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In: Economics

1.) Can you have a Keogh and an IRA plan or even a Roth IRA?

1.) Can you have a Keogh and an IRA plan or even a Roth IRA?

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Ans)

Keogh plan can be established in addition to IRA account because k e o g h plan is qualified plan contribution to account may not be fully deductible

If the employee is working and participating in employee qualified plan they still have keogh plan if the employer's net earning from self-employment the contribution are subjected to overall limitations for defined contribution plans and benefit plan

About Keogh

It is a plan of retirement designed for self employed individuals and their employers it is set up by small business that are structured as LLCs sole proprietorship and partnership a k e o g h is quite similar to 401 (k) for very small business but the annual contribution for limit it is more than 401(k) limit

Objective characteristics of Keogh

1 retirement plan for self employed person.

2 setup for small business

3 can contribute up to 25% of earn income upto $ 30000 per year.

4 contribution are deductible

5 annual income is is excludable

6 distributions are includible

7 penalty for distribution prior to 59-1/2

8 must begin distribution by 70 -1/2

9 division incident to diverse permitted by IRC.

About Individual retirement account

It is a retirement plan it is provided by many financial institution that provide text advantages for retirement saving an individual retirement plan IR a is a type of text deferred or text free retirement saving account t that many financial institutions offer there are mainly three types of IRA

1 tradition- in which investment growth tax deferred and contribution can be tax deductible.

2 r o t h- in which money growth tax free withdrawal an retirement are also text free.

3 rollover- in IRA created by transferring money from 401( k) or other retirement amount.

As we can say individual retirement account IRA is basically a special type of savings account where you can save your money for the purpose of creating a retirement Corpus.

Rahul Sunny answered 1 year ago
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