What's a Keogh Plan?

Keogh plans are a type of retirement plan for self-employed people and small businesses in the United States.

How does a Keogh plan work?

Keoghs (or HR-10 plans) are personal, qualified, tax-deferred retirement plans for self-employed workers and small businesses. A qualified plan is one governed by section 401(a) of the tax code. ... Keogh plans allow workers to contribute pre-tax earnings to retirement funds, where those contributions are tax deductible.

Is a Keogh the same as a 401k?

A Keogh plan is a tax-deferred retirement plan for self-employed people and unincorporated businesses. ... A Keogh is similar to a 401(k), but the annual contribution limits are higher. Also, there is much more to administering these plans than other types.