Retirement Accounts - Other Retirement Plans
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, although most plans are defined contribution. Contributions are generally tax deductible up to 25% of annual income with a limit of $47,000 (as of 2007). 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).
Keoghs are known to have more administrative burdens and higher upkeep costs than Simplified Employee Pension (SEP) plans, but the contribution limits are higher, making Keoghs a popular option for many business owners and proprietors.
A 403(b) plan is a tax-deferred annuity (TSA) plan offered to certain employees of public schools, non-profit organizations and government agencies. Each employee has an account, which is allowed to invest in mutual funds and insurance companies' annuities. Investors in 403(b) accounts can contribute a maximum of $15,500 per year. As with IRAs, investors in their 50s and 60s can make "catch-up" contributions of $5,000.
For more, see the IRS Publication 571 (PDF), current as of March 2008.