To avoid penalties, a person who is not gainfully employed must typically start taking minimum distributions from Keogh retirement accounts by age 70½
How does Keogh plan work?
Contributions are tax deductible when made through a Keogh. If you make a contribution, your account grows tax-free; nevertheless, qualifying distributions are subject to income tax. Regardless of whether your plan is a defined contribution (DC) or defined benefit (DB) plan, Keogh's tax treatment is the same.
What are penalties in law?
Whether it's a contract, a rule, or a regulation, a penalty is a sanction imposed on a person who has broken the law. Civil fines are often less severe than criminal ones, however, penalties can be imposed for both types of infractions.
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