Home > West's Encyclopedia of American Law > Keogh Plan

A retirement account that allows workers who are self-employed to set aside a percentage of their net earnings for retirement income.

Also known as H.R. 10 plans, Keogh plans provide workers who are self-employed with savings opportunities that are similar to those under company PENSION plans or individual retirement accounts (IRAs). However, Keogh plans allow for a much higher level of contribution, depending on the type of plan selected.

Keogh plans were established in 1962 by the Self-Employed Individuals Tax Retirement Act (26 U.S.C.A. § 1 et seq.) and modified by provisions in the EMPLOYEE RETIREMENT INCOME SECURITY ACT of 1974 (29 U.S.C.A. § 1 et seq.), the Economic Recovery Tax Act of 1981 (26 U.S.C.A. § 1 et seq.), and the Tax Equity and Fiscal...