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.

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Definitions:

Money Market Securities

Short-term financial instruments with high liquidity and minimal risk, such as Treasury bills and certificates of deposit.

Total Assets

The sum of all current and non-current assets owned by a company, reflecting its overall value.

Open-End Funds

Mutual funds that continuously issue new shares or redeem existing shares and do not have a fixed number of shares available for the public.

NAV

Net asset value, calculated as the total value of a fund's assets minus its liabilities, usually applied to mutual funds.