Personal Retirement Accounts
Taxpayers earning less than a certain amount may be able to make a tax deductible contribution to this type of account.
IRA
In this account, self-employed persons may make contributions up to a certain amount each year to a retirement account and claim them as a tax deduction.
Keogh Plan
Who is eligible for an IRA or Keogh plan?
Student responses should include: Anyone who is employed is eligible for an IRA and anyone who is self-employed is eligible for a Keogh plan.
Like IRA's, the interest earned on Keogh accounts
not c
Withdrawing funds early from a retirement account can result in
not c
Contributions are made into IRA accounts
not c/d
This is one way that people can put back money to pay expenses in their later years.
personal retirement account
IRAs and Keogh Plans offer consumers the opportunity to make tax deferred contributions to a retirement fund.
true
Penalties are applied if money is withdrawn from a retirement account before retirement age.
true
Personal retirement accounts help people establish financial security for their retirement years.
true
The amount a person can contribute to a Keogh Plan is limited to a set percentage of earned income.
true
The Keogh Plan is a retirement plan
C. for self-employed persons.
A(n) _?_ is a plan that enables workers and their spouses to set aside money for retirement.
C. individual retirement account (IRA)
The allowable amount a person can contribute to a Keogh plan
D. changes periodically
The point where a person stops employment completely.
retirement
This action can lead to stiff penalties and loss of accumulated interest in your personal retirement account.
withdrawing money
The interest earned on a retirement account is taxed as regular income.
false
Generally, money deposited in an IRA or Keogh account can be withdrawn without penalty ____.
B. only at retirement age of 59 1/2 or older
Under certain circumstances, this action allows you to grow your retirement savings tax free.
depositing money
