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1.
Jennifer is self-employed, operating a graphic design studio out of her home. She recently established the following type of employer retirement plan:
Keogh. A Keogh is available to people who are self-employed or who work for an unincorporated business.
2.
Shawn recently joined a dozen other employees of a small biotechnology company and was glad to learn that under its employer retirement plan, the firm will contribute to an IRA for him. Shawn's new employer offers a _______.
SEP IRA. The simplified employee pension (SEP IRA) enables a company with 25 or fewer employees to establish an IRA for each employee.
3.
Some employer retirement plans enable you to actually lower your current taxable income.
True. Some employer retirement plans enable you to contribute pre-tax dollars to your retirement account.
4.
Your employer must make a contribution to your retirement account if you participate in a _______.
SIMPLE IRA. If your employer offers a SIMPLE IRA, it generally must match your contribution up to 3 percent of your compensation.
5.
Employee contribution limits to employer retirement plans are subject to yearly adjustments for _______ every year.
Inflation. Contribution limits rise based on inflation.