Chapter 8: Retirement Planning

Question 1

What are the 4 factors to consider when determining the type of plan to adopt?

Answer 1

1. Current Financial condition of business
2. Owners retirement savings need
3. Owners current age
4. Owners attitude toward investment risk

Question 2

What are characteristics of Keogh plans?

Answer 2

Benefits can’t exceed the lesser of $230k or 100% of participants highest avg compensation for 3 years

They are qualified plans established by any unincorporated business entity

Permitted to make loans to common-law employee participants and owner employees