A Keogh Plan Must Be Established as a Defined Contribution

question 91

True/False

A Keogh plan must be established as a defined contribution plan, and the rules are similar to those of a qualified pension plan.

---

Definitions:

Utility Company

A company that provides essential services such as electricity, water, and natural gas to consumers and businesses.

Grocery Store

A retail establishment selling food and other household goods. Often considered an essential service providing everyday necessities to the public.

External Cost

Costs of a transaction or activity that affect parties who did not choose to incur that cost, often referred to in the context of negative externalities in environmental economics.

Postal Worker

An employee of the postal service who is involved in the processing, delivery, or handling of mail.