---
title: Qualified vs. Non-Qualified Plans Under the TCJA
description: The Tax Cuts and Jobs Act of 2017 will bring substantial changes to taxation. Qualified and non-qualified retirement and pensions will be impacted.
image: https://blog.advisors-resource.com/hubfs/Qualified%20vs%20Non-Qualified%20Plans%20under%20TCJA.png
---

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 Apr 19, 2018 11:31:10 AM

# Qualified vs. Non-Qualified Plans Under the TCJA

[Travis Pence](https://blog.advisors-resource.com/blog/author/travis-pence)

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The Tax Cuts and Jobs Act of 2017 (TCJA) will bring substantial changes to all areas of federal taxation, including the new qualified business income deduction rule contained in the new IRC section 199A. As a result, qualified and non-qualified retirement and pensions will be impacted.

## Qualified Pension Plans & Retirement Funds

As you may know, the IRS designates certain retirement and pensions plans as “qualified” and “non-qualified.” In the past, qualified pensions and retirement funds have been the more popular vehicle for savings over non-qualified plans in America.

Popular qualified plans may include:

- 401(k)s
- 403(b)s
- SEP Plans
- Defined Benefit Plans

A retirement or pension plan is considered “qualified” if it meets the federal standards promulgated by the Employee Retirement Income Security (ERISA).

## Non-Qualified Pension Plans & Retirement Funds

Non-qualified plans, on the other hand, do not meet the ERISA requirements. For this reason, non-qualified funds offer more flexibility for employers but also limit the tax benefits. However, under the TCJA, there are new methods in which business owners and employers may further mitigate their tax burden using a non-qualified plan.

These strategies may include:

- Deferred Compensation Plans
- Split Dollar
- Premier Bonus Plans

These opportunities have become available because, under the TCJA, business owners may be taxed at a lower rate:

![Qualified vs. Non-Qualified Plans Under the TCJA](https://blog.advisors-resource.com/hs-fs/hubfs/Imported_Blog_Media/TCJA-Chart-1024x198.jpg?width=718&height=139&name=TCJA-Chart-1024x198.jpg)

Contact us to speak with our non-qualified benefit specialist and find out more!

[Business](https://blog.advisors-resource.com/blog/tag/business), [Finance](https://blog.advisors-resource.com/blog/tag/finance), [Taxes](https://blog.advisors-resource.com/blog/tag/taxes), [Non-Qualified Plans](https://blog.advisors-resource.com/blog/tag/non-qualified-plans), [Qualified Plans](https://blog.advisors-resource.com/blog/tag/qualified-plans)

## Related posts

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[Finance](https://blog.advisors-resource.com/blog/tag/finance), [Qualified Plans](https://blog.advisors-resource.com/blog/tag/qualified-plans)

## [New Opportunities Arise as IRS Announces 401(k) and IRA Limits for 2022](https://blog.advisors-resource.com/blog/irs-announces-401k-and-ira-limits-for-2022)

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 Jan 28, 2022 11:30:00 AM

The Internal Revenue Service (IRS) has announced the 401(k) and IRA Limits for 2022. If you are...

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[![](https://blog.advisors-resource.com/hs-fs/hubfs/Split-Dollar.jpg?height=200&name=Split-Dollar.jpg)](https://blog.advisors-resource.com/blog/split-dollar-plan-utilizing-life-insurance)

[Taxes](https://blog.advisors-resource.com/blog/tag/taxes), [Insurance](https://blog.advisors-resource.com/blog/tag/insurance), [Split Dollar](https://blog.advisors-resource.com/blog/tag/split-dollar)

## [Split Dollar Plans: The Tax-Advantaged Strategy Your Business-Owner Clients Are Missing](https://blog.advisors-resource.com/blog/split-dollar-plan-utilizing-life-insurance)

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 May 14, 2026 3:23:57 PM

A split dollar plan using life insurance can help your clients reduce taxes today, protect their...

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[![Split Dollar | Life Insurance for Business Owners](https://blog.advisors-resource.com/hs-fs/hubfs/Split-Dollar-2.jpg?height=200&name=Split-Dollar-2.jpg)](https://blog.advisors-resource.com/blog/split-dollar-utilizing-life-insurance)

[Business](https://blog.advisors-resource.com/blog/tag/business), [Business Owner](https://blog.advisors-resource.com/blog/tag/business-owner), [Life Insurance](https://blog.advisors-resource.com/blog/tag/life-insurance), [Insurance](https://blog.advisors-resource.com/blog/tag/insurance), [Non-Qualified Plans](https://blog.advisors-resource.com/blog/tag/non-qualified-plans), [Retirement](https://blog.advisors-resource.com/blog/tag/retirement), [Tax](https://blog.advisors-resource.com/blog/tag/tax)

## [Split Dollar Plan Utilizing Life Insurance \[2026 Update\]](https://blog.advisors-resource.com/blog/split-dollar-utilizing-life-insurance)

![Picture of Jordan Pence](https://app.hubspot.com/settings/avatar/59c5c149de751f6daed462d84605c4a6) [Jordan Pence](https://blog.advisors-resource.com/blog/author/jordan-pence) 

 Aug 5, 2022 11:00:00 AM

Now that the flat tax rate for C-Corporations has reduced to 21% (from as high as 35%) thanks to...

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