Is A Military Pension A Qualified Retirement Plan?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    A military pension is a non-qualified retirement plan. It is provided in the public sector, does not offer a vesting schedule for early retirees, does not require membership in the Pension Benefit Guaranty Corp, and is not under ERISA. The  FAS US Military annuity payment (distribution) from form 1099 is non-qualified.
    Answered on July 28, 2013
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The military pension system doesn’t meet the standard definitions.  It isn’t established in the same way a pension plan is established, it isn’t funded in the same way either.  It most closely resembles deferred compensation.  It is taxed like deferred compensation as well.  
    Answered on May 28, 2014
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