A tax-deferred retirement plan for self-employed individuals and unincorporated businesses.
A Keogh plan is a tax-deferred retirement savings plan available to self-employed individuals and owners of unincorporated businesses. Keogh plans allow larger contributions than IRAs (up to 25% of net self-employment income or $66,000 in 2024). Keogh contributions are tax-deductible, and the account grows tax-deferred until retirement. Keoghs come in two forms: defined-contribution (contribution amounts vary year to year) and defined-benefit (promising a specific retirement income). Keogh plans are less common today because SEP IRAs and Solo 401(k)s offer similar or better benefits with less administrative burden. However, Keoghs remain an option for self-employed individuals seeking to maximize retirement savings.