Keogh Plans (HR-10 Plans)
Keogh plans are retirement plans for sole proprietorships and unincorporated businesses. Keogh plans cannot be used by S corporations, limited liability companies, and C corporations. 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 $56,000. Deductions