Keogh Plans

What is a Defined-Contribution Plan?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

A Defined-Contribution Plan is a type of Keogh plan. It is a retirement plan in which a certain amount or percentage of money is set aside each year by a company for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties.
The limitation increased in 2014 from $51000 to $52,000.
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Keogh Plans

What is a Defined-Benefit Plan?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

A Defined-Benefit Plan is a type of Keogh plan. It is a employer-sponsored retirement plan where employee benefits are calculated based on a formula using factors such as salary history and duration of employment. Investment risk and portfolio management are entirely under the control of the company. There are also restrictions on when and how you can withdraw these funds without penalties.
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Keogh Plans

What is a HR(10) Plan?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

HR(10) plans are Keogh plans.
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Keogh Plans

When is the deadline to set up a Keogh plan?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

To deduct contributions, the Keogh plan must be adopted by the last day of the year ( December 31, for calendar year entities). The funding of the contribution can be made up to the due date of the return for that year including extensions.
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Keogh Plans

What is a Keogh Plan ?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

A Keogh plan is a tax deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. A Keogh plan can be set up as either a defined-benefit or defined-contribution plan. Contributions are generally tax deductible up to 25% of annual income with a limit of $51,000 ($50,000 in 2012). Keogh plan types include money-purchase plans (used by high-income earners), defined-benefit plans (which have high annual minimums) and profit-sharing plans (which offer annual flexibility based on profits). As with other qualified retirement accounts, funds can be accessed as early as age 59.5 and withdrawals must begin by age 70.5.
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Travel & Entertainment

What is the per diem rate for incidentals?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

You have the option of deducting the actual expenses or a allowance of $5.
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Travel & Entertainment

What is the current year IRS Meal Allowance?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

For travel within the US the 2011 meal allowance is $46 a day. But higher rates apply to certain high cost areas designated by the government. These higher rates can be found in IRS Pub 1542 at www.irs.gov/formspubs/index.html or www.gsa.gov and click on per diem rates.
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Travel & Entertainment

Are my meal costs during overtime deductible?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

These costs are not deductible if you are not away from your place of business.
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Travel & Entertainment

Are my meal costs deductible?

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

To be deductible, meal costs must be incurred while away from home. The away from home test requires that the person be on a business trip that lasts longer than one business day and requires time off to sleep before returning home. Meal costs while away from home are subject to the 50% deduction limit.
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Auto & Truck Expenses

Temporary place of work

Asked Monday, November 14, 2011 by an anonymous user

CPA Answer:

The IRS considers a work location temporary is one at which the employment is realistically expected to last and actually does last for a period of 1 year or less. A worker can deduct their unreimbursed costs of driving to temporary locations.
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