STEP 1 Retirement plan: Retirement plan is defined as the process in which each individual determines the goal for is retirement income and the procedure to be followed to attain such goal. It includes planning for expenses, saving and identifying the sources from which income can be generated.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Please provide only the explanation part.I have attached the answer to it. please do not skip.will definitely upvote.just try plse.

STEP 1
Retirement plan:
Retirement plan is defined as the process in which each individual determines the goal for is retirement income
and the procedure to be followed to attain such goal. It includes planning for expenses, saving and identifying
the sources from which income can be generated.
STEP 2
Sole
Smaller S
Plan
Large company Non profit
proprietorship corporation
IRA
M
Simple IRA
H
Roth IRA
M
H
SEP
Keogh
H
Simple Sec 401
|(k)
H
H
Independent Sec
401 (k)
Sec 401 (k)*
H
H
H
H
Defined
H
H
contribution
Defined benefit H
Cash balance
L
H
Sec 403(b)/ Sec
457 (b)
L
STEP 3
Note:
IRA stands for individual retirement accounts.
SEP is good for self-employed proprietor only.
Keogh is good for unincorporated business entities.
Sec 401 plans are good for companies with lower number of employees.
Cash balance is good for business generating higher profits. |
Transcribed Image Text:STEP 1 Retirement plan: Retirement plan is defined as the process in which each individual determines the goal for is retirement income and the procedure to be followed to attain such goal. It includes planning for expenses, saving and identifying the sources from which income can be generated. STEP 2 Sole Smaller S Plan Large company Non profit proprietorship corporation IRA M Simple IRA H Roth IRA M H SEP Keogh H Simple Sec 401 |(k) H H Independent Sec 401 (k) Sec 401 (k)* H H H H Defined H H contribution Defined benefit H Cash balance L H Sec 403(b)/ Sec 457 (b) L STEP 3 Note: IRA stands for individual retirement accounts. SEP is good for self-employed proprietor only. Keogh is good for unincorporated business entities. Sec 401 plans are good for companies with lower number of employees. Cash balance is good for business generating higher profits. |
Research Problem 8. Using the blank chart below, determine the appropriateness of
the type of retirement plan for the four types of entities. Use the following nomen-
clature: H: high appropriateness, M: moderate appropriateness, L: low or no appro-
priateness, NA: not applicable. In addition to information in this chapter, also review
resources at the IRS website and other reliable websites.
Sole
Smaller S
Plan
Proprietorship
Corporation
Large Company
Nonprofit
IRA
SIMPLE IRA
Roth IRA
SEP
Кeogh
SIMPLE S 401 (k)
Independent
§ 401(k)
(no employees)
§ 401(k)*
Defined
Contribution
Defined
Benefit
Cash balance
§ 403(b)/
§ 457(b)
Transcribed Image Text:Research Problem 8. Using the blank chart below, determine the appropriateness of the type of retirement plan for the four types of entities. Use the following nomen- clature: H: high appropriateness, M: moderate appropriateness, L: low or no appro- priateness, NA: not applicable. In addition to information in this chapter, also review resources at the IRS website and other reliable websites. Sole Smaller S Plan Proprietorship Corporation Large Company Nonprofit IRA SIMPLE IRA Roth IRA SEP Кeogh SIMPLE S 401 (k) Independent § 401(k) (no employees) § 401(k)* Defined Contribution Defined Benefit Cash balance § 403(b)/ § 457(b)
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