Christian quit his job to open his own online consulting business. He now realizes that he no longer has the benefit of a corporate retirement system. He should consider investing in a(n)
A) simple 401(k) plan.
B) simple IRA plan.
C) automated trust account.
D) Keogh plan.

Question

Quizplus · Accepted Answer

The tax-deferred alternative for self-employed people is to establish a Keogh plan. It's like an IRA for entrepreneurs. One big advantage of Keogh plans is that the maximum that can be invested is much greater than for a traditional IRA. (Keogh's maximum currently is $54,000. The government is allowing a gradual increase in IRA contributions, but even in 2017 the maximum contribution to an IRA is only $5,500.)

Christian Quit His Job to Open His Own Online Consulting