Screening
This page will enable you to quickly decide if you should consider a Keogh
db pension plan. Your Keogh plan will
be a good deal for you if:
- Your sole proprietorship or partnership has no employees. This is
a requirement for db65.comTM, as administration
becomes more time-consuming. Keogh plans, in general, do not have this
requirement
- You have had several years of high Self-Employed
Net Earnings (SENE).
- You are within 20 years of retirement
- You expect your Schedule C Net Income to be larger than your contribution
- *You will have the necessary cash available to make regular required
contributions to the plan on time (if not, we recommend you not set
up a plan with us - refer to Reason 1 below)
- *You take no plan distributions for at least 5 years (if not, we recommend
you not setting up a plan with us - refer to Reason 2 below)
- You keep one account to hold your pension plan funds
- You draw funds monthly from the plan assets when you have retired,
to minimize administrative expenses. A rollover transfer to an IRA is
possible
*If you do not satisfy the conditions marked above (*), we recommend that you DO NOT set up a Keogh db pension plan.
Reason 1
If required contributions are not made on time you may be responsible for paying excise taxes and penalties. This would increase your costs dramatically. It may still be a worthwhile idea for you to create a Keogh db pension plan; but db65.com would recommend you not set up a plan.
Reason 2
According to IRC guidelines, you should not start benefit payments until you have been a participant in the plan for five (5) years.
|
|
|
|
|
| HOME | Basics | Eligibility | Screening | Learn More | Contribution Estimate | Women Only |
| Contact | Definitions | F.A.Q.s | Links | Site Map | Terms | Privacy/Copyright |
|
P.O. Box 2707, Framingham, MA 01703-2707 E-mail: office@db65.com Toll Free Voice Mail: (877) 253-7449 Fax (877) 253-7449 Website Design by WHATASITE.COM Copyright © 1999 - 2006 db65.com |