Keogh and SEP Plans Provide Tax-Deferred Methods for the Self-Employed

question 6

True/False

Keogh and SEP plans provide tax-deferred methods for the self-employed to save for their retirement.

---

Definitions:

Adjusted Gross Income

The total gross income minus specific deductions, a crucial figure in the determination of a taxpayer’s liabilities and eligibility for various tax credits and deductions.

Carry Forward

A tax provision allowing a taxpayer to use any remaining tax credits or deductions in the following fiscal period.

Cash Contributions

Donations or gifts given in the form of physical money, such as banknotes or coins, to charitable organizations or entities.

Written Acknowledgment

A document provided by a charity to a donor confirming a charitable contribution and detailing the value of the contribution and if any goods or services were provided in exchange.