Ch 14: Assignment - Planning for Retirement Term Answer Keogh plan A. SEP plan B. Description For small business owners, particularly those with no employees, this plan is simple and easy to administer. 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 59 1/2. Like contributions to 401(k) plans, payments from this account may be taken as deductions from taxable income. An individual, who decides which investments to buy and sell, designs this retirement plan. Individual retirement | C. arrangement Traditional IRA D. Nondeductible IRA E. Roth IRA | F. Self-directed retirement plan Withdrawal G. H. This type of account can be opened by anyone without a retirement plan at his or her place of employment, regardless of income level. Regardless of income level or participation in an employer retirement plan, a contribution made with after-tax dollars can open this type of account. If you change jobs, arrange for your IRA funds to transfer from one firm to another. It requires that a form be completed designating it as this type of account and makes the institution its trustee. For people in their 30s and 40s, a Roth IRA is an appropriate investment decision. For Keogh and IRA accounts, the magic age is 59 1/2 or will be subject to a 10% penalty Rollover A possible investmt decision 1. ). |