A Keogh plan is a type of qualified pension for self-employed individuals. An individual or entity that establishes a Keogh plan can
I.Only establish a defined contribution profit sharing pension plan.
II.Have both employees and self-employed individuals as participants.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

A Keogh plan is a type of qualified pension for self-employed individuals. An individual or entity that establishes a Keogh plan can
I.Only establish a defined contribution profit sharing pension plan.
II.Have both employees and self-employed individuals as participants.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Statement I is incorrect because a Keogh plan can either be a defined contribution plan or a defined benefit plan. Therefore, statement II is correct because both employees and self-employed individuals can participate in a Keogh plan.

A Keogh Plan Is a Type of Qualified Pension for Self-Employed