Question

A Keogh plan is a(n):

A. Unqualified retirement plan for large corporations.
B. Qualified retirement plan for the self-employed.
C. Tax-exempt annuity for government workers.
D. Split dollar plan for key employees.

Answer 1

A Keogh plan is a qualified retirement plan for the self-employed that allows individuals to contribute a percentage of their income to a retirement account and receive a tax deduction for those contributions.

Step-by-step explanation:

A Keogh plan is a qualified retirement plan for the self-employed. It was established by Congress in 1962 to provide self-employed individuals and small business owners with a tax-advantaged way to save for retirement. Keogh plans allow individuals to contribute a percentage of their income to a retirement account and receive a tax deduction for those contributions.