Assignment 3 Flashcards
1
Q
Keogh Plan
A
• Retirement Plan for self‐employed individual
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
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)
4
Q
SIMPLE
A
- Savings Incentive Matching Plan for Employees
- Elective deferral limit – Same as 401(k)
- Catch‐up contributions
- Required employer matching contribution
5
Q
Solo 401(k) Plan
A
• Designed for business owner and spouse
• Greater contributions than a profit sharing
plan