Two attorneys operate their practice as a partnership. they want to start a program through their practice that will provide retirement benefits for themselves and three employees. they would likely choose Keogh Plan.
About Keogh Plan
A Keogh plan is indeed a tax-deferred pension option accessible for retirement from self-employed people or unincorporated firms. Although most plans are set up as the latter, a Keogh plan could be set up either as a defined-benefit plan or even a defined-contribution plan. The Internal Revenue Service (IRS) has the authority to adjust the relevant absolute limitations in U.S. dollar terms each year. Contributions are typically tax deductible up to a specific percentage of yearly income.
For sole proprietorships and other unincorporated enterprises like partnerships and self-employed persons, Keogh plans were retirement plans. An individual cannot establish and utilize a Keogh plan for retirement if they are an independent contractor.
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