Question

Term Answer Description Keogh plan A. If you change jobs and take the money directly, you are subject to a 20% withholding tax. SEP plan B. It requires that a form be completed designating it as this type of account and makes the institution its trustee. Individual retirement arrangement C. With this type of account, earnings accrue tax free and are not subject to tax until they are withdrawn (after the individual reaches age 59 1/2). Traditional IRA D. Like contributions to 401(k) plans, payments from this account may be taken as deductions from taxable income. Nondeductible IRA E. For Keogh and IRA accounts, the magic age is 59 1/2 or will be subject to a 10% penalty. Roth IRA F. For people in their 30s and 40s, a Roth IRA is an appropriate investment decision. Self-directed retirement plan G. Aimed at small-business owners, this plan is just like a Keogh plan. Withdrawal H. Couples filing jointly with adjusted gross incomes of up to $193,000 ($131,000 for single filers) can open this type of account, without regard to participation in an employer retirement program. Rollover I. 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. A possible investment decision J. Couples filing jointly (even when participating in a retirement plan at their places of work) can open this type of account as long as their adjusted gross income is less than $98,000 ($61,000 for single taxpayers).

Term
Answer
Description
Keogh plan
A. If you change jobs and take the money directly, you are subject to a 20% withholding tax.
SEP plan
B. It requires that a form be completed designating it as this type of account and makes the institution its trustee.
Individual retirement arrangement
C. With this type of account, earnings accrue tax free and are not subject to tax until they are withdrawn (after the individual reaches age 59 1/2).
Traditional IRA
D. Like contributions to 401(k) plans, payments from this account may be taken as deductions from taxable income.
Nondeductible IRA
E. For Keogh and IRA accounts, the magic age is 59 1/2 or will be subject to a 10% penalty.
Roth IRA
F. For people in their 30s and 40s, a Roth IRA is an appropriate investment decision.
Self-directed retirement plan
G. Aimed at small-business owners, this plan is just like a Keogh plan.
Withdrawal
H. Couples filing jointly with adjusted gross incomes of up to $193,000 ($131,000 for single filers) can open this type of account, without regard to participation in an employer retirement program.
Rollover
I. 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.
A possible investment decision
J. Couples filing jointly (even when participating in a retirement plan at their places of work) can open this type of account as long as their adjusted gross income is less than $98,000 ($61,000 for single taxpayers).

Added by Danielle A.

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