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Subject:  Self. empl. retirement acct choice Date:  1/23/1999  6:49 PM
Author:  Meowiz Number:  8048 of 105397

My husband, 56, receives his partial fed. annuity from taking 'early out', and also is developing his own consulting business. He would be called 'owner-employee' I guess. I have several questions about income from his own business.

1) First, can one contribute to a Keogh or SEP or Simple up till same age as an IRA? (70.5?) I read the Retirement school info, but I don't see this fact there. I do see that money can't be withdrawn before age 59.5 without penalty.

2) Is there a reason that one type of self-empl. retirement acct would be preferable to others, assuming we are able to put in max. amount possible? Why would one select a different type? I know Keogh permits highest percentage, and w/Vanguard, for example, the only fee is $10.00 to join. Other companies are free, as I understand from posts to me here.

3) If he has a choice between getting an entire grant contract in one large lump sum yearly or paid to him monthly,
is there any good reason to get it monthly?

4) Do you think putting max in the retirement acct. is best idea, better than investing it some other way? I know that depends on other things, but excluding the fact that you can't take it out till age 59.5. Aside from that fact, is there some other reason to do it differently?

Thank you in advance for your assistance! meowiz
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