A more thorough explanation:

A qualified plan is a type of retirement plan offered by employers that meets certain requirements set by the Internal Revenue Code. These plans allow both employers and employees to contribute to the plan, and the plan can earn income without facing taxes. The employee will not pay taxes until withdrawing the income in retirement, which can greatly increase the overall retirement benefit. Employers can also deduct their contributions to the plan up to a certain amount.

Examples of qualified plans include:

• 401k plans
• Pensions
• 403(b) plans
• 457 plans

To receive tax-deferred treatment, qualified plans must meet certain requirements, such as the employer making required legal filings, the plan being permanent, and the plan only benefiting employees. There are also limitations on contributions and minimum age requirements for retirement that differ based on the type of plan.

For example, if an employee contributes $10,000 to their 401k plan, they will not pay taxes on that money until they withdraw it in retirement. If the employee is in a higher tax bracket in retirement, they may end up paying less in taxes overall.

Another example is if an employer contributes $5,000 to their employee's pension plan, they can deduct that amount from their taxes. This can help reduce the employer's tax liability.