Keogh plan

Established by the US Congress in 1962, the the Keogh Plan (named after US Representative James Keogh of New York) is a qualified retirement plan. It is also known as an H.R. 10 plan. It is not an IRA (Individual Retirement Account).

=Plan Type= Intended for self-employed individuals, a Keogh plan is a qualified retirement plan that may either be a  defined benefit plan or a  defined contribution plan.

A sole proprietor or a partnership can set up one of these plans. A common-law employee or a partner cannot set up one of these plans.

=Contributions and Withdrawals=

Similar to other qualified retirement plans, funds can be accessed as early as 59 1/2 and withdrawals must begin by age 70 1/2.

Contributions are tax-deferred until age 59 1/2. Distributions must occur at age 70 1/2.

The maximum amount that can be contributed generally changes each year. A person who is employed but who also receives self-employment income is eligible to open up a Keogh plan. The IRS requires that employees under a Keogh plan be at least 21, be full-time, and have worked for at least one year.

=Administration= (Employer perspective) 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.

=References=

=Links=
 * Keogh Plan, on Wikipedia
 * Keogh Plan, on Investopedia.com
 * Keogh Plan, on InvestorGlossary.com
 * Definitions of Keogh Plan, on Google