Concerning the income taxation of contributions, plans that cannot discriminate and must comply with specific IRS codes and regulations. Contributions are deductible from income taxes in the year they are made. Conversely, non-qualified plans can discriminate, do not need to be filed with the IRS, and contributions are not tax-deductible. Some plans will only be qualified (401K and Health Saving Accounts), some only non-qualified (deferred compensation), and some can be either, depending on how they are set up (Individual Retirement Accounts and annuities).