Which of the following is an example of a tax-qualified retirement plan?

• A. Nonqualified deferred compensation plan
• B. Defined contribution plan
• C. Traditional pension
• D. Roth IRA

Answer: (B)

Tax-qualified retirement plans are employer-sponsored arrangements that meet IRS requirements to receive favorable tax treatment—contributions may be deductible or pretax, earnings grow tax-deferred, and distributions are taxed as ordinary income when money is taken out in retirement.

A defined contribution plan is a classic example of this kind of plan. It operates under qualified status, meaning it complies with ERISA/IRC rules to receive the tax advantages and offers pretax employee contributions (via payroll deferrals) and tax-deferred investment growth, with distributions taxed later.

The other options don’t fit as tax-qualified employer plans in the same way. A nonqualified deferred compensation plan isn’t a tax-qualified plan and doesn’t receive the same tax advantages. A Roth IRA is a personal retirement account with after-tax contributions and tax-free withdrawals, not an employer-sponsored qualified plan. A traditional pension is a defined benefit plan and is also tax-qualified, but in typical exam framing, the most straightforward example of a tax-qualified plan among common choices is the defined contribution plan.