Ch 14: Assignment - Planning for Retirement Answer Description Term Keogh plan A SEP plan | Individual retirement arrangement Traditional IRA Nondeductible IRA E. | Two basic types of retirement programs-Keogh and SEP (for self-employed individuals) -and IRAs allow individuals to set up their own tax-sheltered retirement plans. Couples filing jointly (even when participating in a retirement plan at their places of work) can open this type of account as long as their adjusted gross income is less than $98,000 ($61,000 for single taxpayers. Couples filing jointly with adjusted gross incomes of up to $193,000 ($131,000 for single filers) can open this type of account, without regard to participation in an employer retirement program. with no special record-keeping requirements or forms to file, an IRA can be an excellent vehicle for sheltering income from taxes. If you change jobs and take the money directly, you are subject to a 20% withholding tax. It requires that a form be completed designating it as this type of account and makes the institution its trustee. With this type of accou, earnings accrue tax free and are not subject to tax until they are withdrawn (after the individual reaches age 59 1/2). For small business owners, particularly those with no employees, this plan is simple and easy to administer At age 70 1/2, you must start, except if have a Keogh account and are gainfully employed or you have a Roth IRA. Like contributions to 401(k) plans, payments from this account may be taken as deductions from taxable income. Roth IRA F. Self-directed retirement plan G. Withdrawal H. Rollover A possible investment decision | Ch 14: Assignment - Planning for Retirement Answer Description Term Keogh plan A SEP plan | Individual retirement arrangement Traditional IRA Nondeductible IRA E. | Two basic types of retirement programs-Keogh and SEP (for self-employed individuals) -and IRAs allow individuals to set up their own tax-sheltered retirement plans. Couples filing jointly (even when participating in a retirement plan at their places of work) can open this type of account as long as their adjusted gross income is less than $98,000 ($61,000 for single taxpayers. Couples filing jointly with adjusted gross incomes of up to $193,000 ($131,000 for single filers) can open this type of account, without regard to participation in an employer retirement program. with no special record-keeping requirements or forms to file, an IRA can be an excellent vehicle for sheltering income from taxes. If you change jobs and take the money directly, you are subject to a 20% withholding tax. It requires that a form be completed designating it as this type of account and makes the institution its trustee. With this type of accou, earnings accrue tax free and are not subject to tax until they are withdrawn (after the individual reaches age 59 1/2). For small business owners, particularly those with no employees, this plan is simple and easy to administer At age 70 1/2, you must start, except if have a Keogh account and are gainfully employed or you have a Roth IRA. Like contributions to 401(k) plans, payments from this account may be taken as deductions from taxable income. Roth IRA F. Self-directed retirement plan G. Withdrawal H. Rollover A possible investment decision |