Which of the following is a true statement? A. Keogh plans are a form of nonqualified...
Which of the following is a true statement?
A. Keogh plans are a form of nonqualified retirement plan.
B. Discrimination in the context of qualified retirement plans generally means that firms may not discriminate in favor of younger workers.
C. A spouse who does not work cannot make deductible IRA contributions.
D. All of the above are false statements.
Homework Answers
Solution: Option-3
Explanation: When the spouse is not working and have a retirement plan through your employer, the spouse will not be allowed to deduct IRA contributions. IRS considers the Keogh plans to be qualified plan and it come in two types: defined-benefit plans and defined-contribution plans. The discriminatory rule is toward company executives and highly-compensated employees.
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