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What is the allowable amount a person can contribute to a keogh plan?
Wiki User
∙ 9y ago
As of 2014, you can contribute up to 25% of your self-employment earnings. If you make $80,000, you can contribute a maximum of $20,000.
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∙ 9y ago
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Can you rollover a keogh plan to a self directed IRA?
Keogh plan is a qualified tax-deferred retirement plan targeted to the self-employed. Administrative fees are generally higher on Keogh plans than on individual retirement accounts, because Keoghs are more complex. Yet Keoghs typically allow higher contribution amounts. Therefore, self-employed people who make good money often find that a Keogh's benefits outweigh its costs. When they sell, incorporate or retire, they may choose conversion to a lower-cost IRA.
What is a Keogh balance?
Definition of the Keogh account is : A tax-deferred trust savings account that allows self-employed individuals or those who own their own incorporated businesses to save for their retirement. Savers place a portion of their income each year in their Keogh account until they reach at least age 59 1/2. Federal income tax on the deposited funds and the interest they earn is deferred until withdrawals are begun, presumably when the saver has retired, and is, therefore, in a lower tax bracket. Employers who establish a Keogh plan for themselves must also make the benefit available to qualified employees.
What are the income tax incentives for seniors for 2010?
There are many tax incentives for seniors.1. Medical and dental expenses. Medical expenses are often one of the largest expenses for retired people. Fortunately, some medical expenses are deductible. These include health insurance premiums (including Medicare premiums), long-term care insurance premiums, prescription drugs, nursing home care, and most other out-of-pocket heath care expenses.If you itemize your deductions, medical expenses are deductible from your income taxes on Schedule A of your tax return. However, they are subject to a special limit: They are deductible only to the extent they exceed 7.5% of your adjusted gross income (AGI). For example, if your AGI was $100,000 in 2009, only your medical expenses above $7,500 (7.5% x $100,000 = $7,500) would be deductible. If you had $10,000 in medical expenses in 2009, you could deduct only $2,500.2. Selling your house. Retired people often sell their homes to move into smaller places or retirement communities. If you've lived in your home for a long time, you probably have substantial equity and will earn a large profit on the sale. Fortunately, you may not have to pay any tax on your profit. As long as you live in your home for at least two out of the five years before you sell your house, the profit you make on the sale -- up to $250,000 for single taxpayers and $500,000 for married taxpayers filing jointly -- is not taxable.3. Retirement plan contributions. Just because you are retired or semi-retired doesn't mean that you can't make tax-deductible contributions to retirement plans such as IRAs. Those over 50 have higher contribution limits for traditional IRAs, Roth IRAs, and 401(k)s. For example, a married couple over 50 can contribute as much as $12,000 to an IRA (for the 2009 tax year) and deduct the amount from their income tax.Or, you may prefer to contribute to a Roth IRA. You'll pay taxes on the income you contribute now, but the withdrawals upon retirement are tax-free. This means no tax need be paid on all the interest or other income earned by your Roth IRA investments.Retirees with their own businesses may also establish SEP-IRAs, Simple IRAs, Keogh plans, and solo 401(k) plans that have higher contribution limits for those over 55.4. Investment expenses. The best way to earn money when you retire is in the form of interest, dividends, and capital gains from investments. Dividends and capital gains are taxed at just 15% (5% for taxpayers in the lowest income tax bracket). Unlike income from a job or business, these types of income are not subject to Social Security or Medicare taxes.In addition, fees you incur for investment advice or accounting services are deductible to the extent they, along with your other itemized personal deductions, exceed 2% of your adjusted gross income. Examples include:attorney and accounting feessafe deposit box feessubscriptions to investment newslettersfees for online serviceshome computers used for investment purposesfees to financial planners, andfees you pay to a broker, bank, trustee, or similar agent to collect investment income, such as your taxable bond or mortgage interest, or your dividends on shares of stock.However, you cannot deduct fees you pay to a broker to acquire investment property, such as stocks or bonds. You must add the fee to the cost of the property and recoup your expenses when you sell.5. Business expenses. Many retirees continue to run their own businesses or start new ones. For example, some retired employees work part-time as a consultant for their former employers and other clients. Having a business (whether full- or part-time) is a great way to get tax deductions. You may deduct all the necessary expenses you incur to do business, so long as they are reasonable in amount. This includes business travel, the cost of business equipment such as computers, and outside or home offices.6. Charitable contributions. Retirement is a time many people think about giving back to their community by making charitable contributions. Such contributions are deductible as itemized deductions; however, they are subject to special limitations. Cash contributions of up to 50% of your adjusted gross income are deductible each year as an itemized deduction.If you donate property other than cash to a qualified organization, you may generally deduct the fair market value of the property. If the property has appreciated in value, however, you may have to make some adjustments. However, if you donate a car, boat, or airplane, your deduction generally is limited to the gross proceeds from its sale by the charitable organization. This rule applies if the claimed value of the donated vehicle is more than $500.7. Standard deduction. This applies if you don't itemize your deductions (many older folks don't if they are no longer paying mortgage interest). Folks who are 65 and older by December 31 of the tax year are entitled to a higher standard deduction. Technically, you are considered 65 on the day before your 65 th birthday. For example, for the tax year 2009, you can take the higher standard deduction if you were born before January 2, 1945.You get an additional $1,250 if you are single and an extra $1,000 (for each spouse older than 65) if you are married. You can also claim the higher deduction if only your spouse is older than 65 and you file a joint return.
Who is eligible for an IRA or Keogh plan?
Individuals with earned income, either through self-employment for a Keogh plan or through wages for an IRA, are eligible to contribute. There may be additional eligibility requirements based on income levels or participation in other retirement plans.
What is the birth name of Finola Keogh?
Finola Keogh's birth name is Finola Maeve Keogh.
What is the birth name of Myles Keogh?
Myles Keogh's birth name is Michael Damien Keogh.
What is the birth name of Tommy Keogh?
Tommy Keogh's birth name is Thomas Lawrence Keogh.
When did Theodora Keogh die?
Theodora Keogh died in 2008.
When was Theodora Keogh born?
Theodora Keogh was born in 1919.
When was Dermot Keogh born?
Dermot Keogh was born in 1945.
When was James Keogh born?
James Keogh was born in 1916.
When was Helen Keogh born?
Helen Keogh was born in 1951.
When did William Keogh die?
William Keogh died in 1878.
When was William Keogh born?
William Keogh was born in 1817.
When was John Keogh born?
John Keogh was born in 1740.
