What does it mean?

The retirement planning conversations usually involve the employer$$employee relationship. For individuals who are self$-$employed, self$-$directed retirement programs also allow them to plan for their retirement.

Match the self$-$directed retirement program terms on the right with the descriptions of the terms on the left. $($Hint: These are not necessarily complete definitions, but there is only one possible answer for each term.$)$

Description Term

This plan allows self$-$employed individuals to set up tax$-$deferred retirement plans or accounts for themselves and their employees.

For people in their $30$s and $40$s$,$ a Roth IRA is an appropriate investment decision.

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.

With this account, all withdrawals from the account are tax free provided that the account has been open for at least five years and the individual is past age $591/2.$

Although dependent on several variables, any gainfully employed person can have this type of account.

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