Assignment 3 Flashcards

1
Q

Keogh Plan

A

• Retirement Plan for self‐employed individual

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2
Q

SEP Requirements

A
• Simplified Employee Pension
• In writing
• Employee requirements
– Age 21
– Worked in 3 out of last 5
years
– Received at least $500 in 2007(index)
– Fully vested
• Held in IRA
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3
Q

Keogh Contributions

A

• Contribution for self-employed owner is
based on:
Earned income (minus contribution to plan)
Less ½ of SECA

Max. of $225,000 in 2007
($245,000 in 2010)

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4
Q

SIMPLE

A
  • Savings Incentive Matching Plan for Employees
  • Elective deferral limit – Same as 401(k)
  • Catch‐up contributions
  • Required employer matching contribution
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5
Q

Solo 401(k) Plan

A

• Designed for business owner and spouse
• Greater contributions than a profit sharing
plan

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