Chapter 3 Review Key Terms Refer to glossary for correct definitions. Keogh plan Review Questions Refer to answer pages for correct answer. June Jones is thinking of installing a retirement plan for her budding flower business. June has indicated that she knows nothing about retirement plans and would like to speak with her financial adviser on the issue.
Benefits accrue based on all years of salary.
Benefit costs are less predictable. Administrative costs are lower. Plan assets are allocated to individual accounts for each participant. It can provide benefits based on past service. Faye is a sole proprietor with a qualified profit-sharing plan that enables her to contribute 15 percent of earned income.