Which of the following is NOT a general requirement of a qualified plan?

A qualified plan must adhere to specific general requirements to ensure compliance with federal regulations governing retirement plans. The requirement that is NOT a general requirement of a qualified plan is that it must provide an offset for social security benefits.

Qualified plans are designed to provide retirement benefits for employees and their beneficiaries on a tax-advantaged basis. They must be communicated effectively to ensure that all eligible employees understand the plan’s details, thereby fostering participation. It is also essential that the plan is for the exclusive benefit of employees and their beneficiaries, ensuring that the assets are used to provide retirement income rather than being diverted for other purposes. Additionally, a qualified plan must be permanent, written, and legally binding, which ensures that there are clear rules governing the plan and that it remains in effect until it is formally amended or terminated.

The notion that a qualified plan must provide an offset for social security benefits does not align with these requirements, as plans are not obligated to include provisions that offset other social security benefits. This aspect may be included in some plans but it is not a standard requirement for all qualified plans.