When it comes to planning for retirement, the tax-advantages of qualified pension plans are hard to beat, for example:

• Growth inside a qualified pension plan is not taxable until distributed.
• Within limits, contributions made by an employer to a plan are deductible.
• Allowable employee contributions are not taxable until distributed.

The kinds of plans available are numerous, from the traditional defined benefit pension plan, the popular defined contribution 401(k) plan, to the newer simple plans. What all these plans have in common, however, is that they have to be sponsored by an employer.

The existence or non-existence of a qualified plan should be a prime factor in seeking employment. After all, after earning a living, what's more important than being able to do so after retirement?

But even if the employer has qualified plan, it's design could be determinative. For example, how is the benefit determined in a defined benefit pension? What percent of income is paid out and what are the eligibility requirements? If a 401(k) is offered is there an employer matching contribution and if so, how much? What investment funds are available?

These are important questions and the answers to them, combined with the tax benefits of qualified plans, could mean the difference between a healthy retirement and the need for some supplemental planning.

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