Term Answer Description Keogh plan For small-business owners, particularly those with no employees this plan is simple and easy to administer 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 Like contributions to 401(k) plans, payments from this account may be taken as deductions from taxable income A. SEP plan B. C. Individual retirement arrangement Traditional IRA D. An individual, who decides which investments to buy and sell, designs this retirement plan This type of account can be opened by anyone without a retirement plan at his or her place of employment, regardless of income level With this type of account, earnings accrue tax free and are not subject to tax until they are withdrawn (after the individual reaches age 59 1/2) Nondeductible IRA E. Roth IRA F. G. If you change jobs and take the money directly, you are subject to Self-directed retirement plan Withdrawal a 20% withholding tax Although dependent on several variables, any gainfully employed person can have this type of account. H. Rollover I. With no special record-keeping requirements or forms to file, an IRA can be an excellent vehicle for sheltering income from taxes. For Keogh and IRA accounts, the magic age is 59 1/2 or will be A possible investment decision subject to a 10% penalty