CH 19 Section 3 - Keogh Plans

Distributions: 2) Are mandatory by age _______

70.5

1. Keogh Plan/ __________ Plan

HR-10

Rollovers - Distributions from a Keogh Plan __________ rolled over into another Keogh Plan or into other types of retirement plans such as IRAs or other qualified plans (401k).

MAY BE

- Keoghs are _________ complex to set up than SEPs but are advantageous as they allow for __________ contribution limits

more higher

Distributions: 3) Distributions to plan holders are taxable as __________ _________

ordinary income

b) Plan Designed For: ______________ individuals with earnings from self-employment including sole proprietorships, Partnerships, and unincorporated entities

self-employed

c) Eligibility: recipients of income from ______________ and their __________ employees who meet certain requirements (work ________ hours per year, are ______ years of age or older, and have at least ___ year of service to the company) are eligible

self-employment full-time 1000 / 21/ 1

e) Allowed Investments: Keogh plans can invest in stocks, bonds (including treasury bonds), mutual funds, ______________________, and _________ ___________

unit investment trusts variable annuities

Distributions: 1) May begin at age 59.5. - Funds withdrawn before age 59.5 are subject to a _____ penalty tax except in the case of ________ or __________ _____________

10% death / permanent disability

Distributions: 1) May begin at age _________

59.5

Rollovers - Distributions from a Keogh Plan may be rolled over into another Keogh Plan or into other types of retirement plans such as IRAs or other qualified plans (401k). - Rollovers must be completed within ____________

60 days

Distributions: 2) Are mandatory by age 70.5. - Required minimum distributions (RMDs) must begin no later than ___________ following the calendar year in which the owner reaches age _______. - Late distributions are subject to a _______ penalty tax on the insufficient distributions

April 1st 70.5 50%

a Keogh Plan is a ___________, _____________ retirement plan for ____________ individuals that can be set up as a defined ____________ plan (like a profit sharing plan) or a defined __________ plan.

qualified, deferred self-employed contribution / benefit