A qualified retirement plan is a pension plan that meets requirements set forth in the Internal Revenue Code. In order to provide an incentive to an employer to offer a qualified planInternal Revenue Code provides favorable tax treatment to such plans. If the Internal Revenue Code's qualification requirements are satisfied, the employer is entitled to a current deduction for plan contributions (within limits) and employees are not taxed on plan benefits until received. There are two general types of qualified retirement plans: defined contribution plans and defined benefit plans.