A retirement plan is said to be tax qualified when it meets the requirements of the Internal Revenue Code (IRC) and is eligible for certain tax benefits. Tax qualified retirement plans are designed to encourage individuals to save for retirement by providing tax advantages. These plans include 401(k) plans, 403(b) plans, and traditional IRAs. By being tax qualified, these plans offer benefits such as tax-deferred growth on contributions and potential tax deductions for contributions. Additionally, withdrawals from tax qualified retirement plans may be taxed at a potentially lower rate during retirement. To maintain their tax qualified status, these plans must adhere to specific regulations outlined in the IRC. Overall, having a tax qualified retirement plan can provide individuals with valuable tax benefits and incentives to save for retirement.