Keogh
What is it? A tax-deferred retirement plan for the self-employed, partnerships, and small businesses. A Keogh is usually a better bet than a SEP for a self-employed individual with high, stable earnings. There are two kinds of defined-contribution Keoghs: profit-sharing plans and money-purchase plans. Profit-sharing plans give you the most flexibility. You are allowed to contribute up to 15% of self-employment income, and you can vary the percentage of income you want to sock away from year to year. Since the earnings ceiling is $160,000, the maximum contribution is $24,000 annually. You can put away more money with a money-purchase Keogh; as much as 25% of your income up to $30,000 annually. But you must contribute the same percentage of income every year. You can combine both plans to boost your contributions and to retain some flexibility.Added By: Katherine
The Keogh definition has been viewed 532 Time(s)!
Send To Friends!
If you'd like to send the Keogh definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Keogh. If you need any more information on this term, please don't hesitate to contact us.