Qualified Plans
Which businesses may establish a qualified plan?
Answer and explanation
Answer: D. IRS Publication 560 explains that any business can establish qualified plans, including sole proprietors and partnerships, which is why a self-employed person's qualified plan is called a Keogh. There is no incorporation requirement, no minimum headcount, and no bar arising from an existing IRA-based plan.Source: IRS Publication 560 — Pub 560, Who may establish a qualified plan
More qualified plans questions
- In which plan does the participant rather than the employer bear the investment risk?
- What distinguishes a defined benefit plan from a defined contribution plan?
- What feature of a 401(k) plan distinguishes it from a plain profit-sharing plan?
- What is a Keogh plan?
- What is a SEP?
- Which employer may set up a SIMPLE IRA plan?
621 New York questions like this one.
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