Keogh Plan

Definition

A Keogh plan is a tax-deferred retirement plan available to self-employed individuals and unincorporated businesses. It allows significantly higher contribution limits than a traditional or Roth IRA, making it attractive for high-earning self-employed professionals. Keogh plans can be structured as either defined-benefit or defined-contribution plans, and they require more administrative complexity than simpler alternatives like SEP IRAs or solo 401(k)s.