how are withdrawals from qualified retirement plans taxed 
withdrawals or distributions from qualified retirement plans must be included in the taxpayer s income for that year and are taxed at the same rate as their ordinary income such as a salary as long as the account has been open for more than five years roth type accounts are eligible for tax free withdrawals this is because the income that was used to fund the account s contributions has already been taxed 5the bottom linequalified retirement plans are employer sponsored plans that meet the requirements of the internal revenue code irc and the employee retirement income security act erisa and are eligible for certain tax benefits such as tax deductions for contributions and tax deferral of investment gains qualified retirement plans can be either defined benefit or defined contribution plans 