Keogh Plan
 |
Definition of 'Keogh Plan'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).Also known as an HR(10) plan, Keogh plans can invest in the same set of securities as 401(k)s and IRAs, including stocks, bonds, certificates of deposit and annuities. |
 |
Investopedia explains 'Keogh Plan'Keogh plans were established through legislation by Congress in 1962 and were spearheaded by Eugene Keogh. As with other qualified retirement accounts, funds can be accessed as early as 59.5 and withdrawals must begin by age 70.5.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. |
Related Definitions
Articles Of Interest
-
Retirement Plan Tax Form 5329: When To File
Read this if you've taken early distributions or owe excess-contribution or excess-accumulation penalties. -
Will Your Retirement Income Be Enough?
Find out how to determine whether you're on the path to a comfortable retirement, or financial ruin. -
Top 10 Home Business Tax Tips
If you work for yourself, make sure you are getting the most for your tax dollars. -
Avoiding Mistakes In Required Minimum Distributions (RMD)
If you don't calculate your required minimum distributions accurately, you might have to pay an excise tax. -
Lump Sum Versus Regular Pension Payments
If you're about to retire, you may be facing this dilemma soon. Find out what your options are. -
I am the beneficiary of an IRA and a Keogh. Can I combine them into one plan?
It depends. If you are a "spouse beneficiary" for both the Keogh and the IRA, then you may transfer or roll over the inherited IRA assets to your own Traditional IRA, and you can also roll over ... -
What is the difference between a Keogh and an IRA?
The Keogh plan, or HR10, is an employer-funded, tax-deferred retirement plan designed for unincorporated businesses or self-employed persons. The Keogh plan, named after U.S. Representative Eugene ... -
401(k) Plans For The Small Business Owner
If you own a business, this may be the plan for you! Find out about its benefits and eligibility requirements. -
Plans The Small-Business Owner Can Establish
Don't hesitate to adopt a smart plan for you and your employees. -
Are You Really Retired Just Because You Stopped Working?
Retirement doesn't have to mean the end of working, it can be just the end of working to get by every week. Retirement should be about working only if you want to, not because you have to.
Free Annual Reports