For a retirement plan to be qualified, it must be designed for whose benefit?

A qualified retirement plan must be designed primarily for the benefit of employees. This standard ensures that the plan achieves its goal of providing financial security to workers in their retirement years. Qualified retirement plans, such as 401(k) plans or pension plans, often come with tax advantages that benefit both employers and employees, but the intent and structure are firmly rooted in the employees' financial well-being.

By focusing on the employees, these plans are subject to regulations that protect employee interests, such as nondiscrimination rules, which ensure that benefits are not disproportionately favoring highly compensated employees over lower-paid workers. This design promotes fairness and inclusivity in retirement planning, directly aligning with the main objective of providing employees with reliable income during retirement.