Today. the laws governing retirement accounts no longer distinguish between incorporat and unincorporat businesses. so there are additional options available to self-employ persons. including SEP IRAs and 401(k)s. The term “Keogh” is no longer even list on the IRS website as a separate type of account. It is now view as a “qualifi plan” specific to sole proprietors and small businesses. Qualifi Plans are defin by the IRS as being accord special tax considerations as long as they comply with IRS requirements. contribution limits. discrimination rules. vesting standards. and participation minimums.
Which include such things as
Types Of Keogh Plans Keogh plans africa email list can be one of three types: Profit-Sharing Keogh – a defin contribution plan where the employer pays into the plan for employees on a voluntary basis. (The business does not actually ne to have profits to make contributions.) Money Purchase Keogh – a defin contribution plan similar to a profit-sharing plan but which commits the business to make fix contributions for the employees. Defin Benefit Keogh – a plan that contributes money to employee accounts bas on pretermin benefits upon retirement. Keogh Plan Qualifications / Who can enroll? Sole proprietorships and non-incorporat businesses may have a Keogh plan. of a business that has a Keogh plan. are over 21 years old. and work at least 1.000 hours per year for the business.
If you are an employee
Then the business must include you BY Lists in the plan. The business must make the plan available to all employees who qualify. If you are an employee of a large company and have a side business. you can have a Keogh for your side business. but your total contribution to all plans cannot exce the IRS limits. Since the contribution limits for a Keogh tend to be higher than other available plans. such as IRAs or SEP IRAs. they appeal to doctors. consultants. lawyers. and other high earners who work for themselves or have very few employees. Keogh Plan Rules The IRS rules for Keogh plans are similar to those of other retirement plans and include the following.
