Series 24: HR-10 Plans (Keogh Plans)

HR-10 Plans (Keogh Plans)

Keogh Plans are retirement plans for sole proprietorships and unincorporated businesses. S corporations, Limited Liability Companies, and C corporations are ineligible. A Keogh Plan may be designed as either a defined-benefit plan or defined-contribution plan.

The defined-contribution plan provides an individual account for each participant in the plan. It may be of two kinds: profit-sharing plans and money-purchase plans. With the profit-sharing plan, employers can contribute up to the lesser of 100% of the participant’s earned income into the plan or $53,000. Deductions cannot exceed 25% of the compensation paid during the year to your eligible employees. Employer contributions are discretionary, in the sense that their amount may vary from year to year. Whe