Glossary term
Keogh Plan
A Keogh plan is an older name for a qualified retirement plan for self-employed individuals and unincorporated businesses.
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What Is a Keogh Plan?
A Keogh plan is an older name for a qualified retirement plan covering a self-employed individual or an unincorporated business owner. The term comes from H.R. 10 plans, and it is less common today because the IRS generally describes these arrangements as qualified plans for self-employed individuals.
In practice, someone using the phrase “Keogh plan” is usually talking about a tax-favored retirement plan such as a profit-sharing plan, money purchase pension plan, defined benefit plan, or 401(k)-style qualified plan maintained by a self-employed person or small business.
Key Takeaways
- Keogh plan is a legacy term, not a separate modern plan category by itself.
- The plan is generally a qualified retirement plan for a self-employed person or unincorporated business.
- Contribution and deduction rules depend on the actual plan type.
- SEP and SIMPLE plans are different small-business retirement plan options.
How the Term Is Used Today
The IRS still notes that qualified plans are sometimes called H.R. 10 or Keogh plans when they cover self-employed individuals. But the useful question is not the label. It is whether the plan is a defined contribution plan, a defined benefit plan, a 401(k) plan, or another qualified arrangement.
Plan label | Practical meaning |
|---|---|
Keogh or H.R. 10 plan | Legacy name for a qualified plan covering self-employed individuals. |
Profit-sharing plan | Defined contribution qualified plan with employer contributions. |
Defined benefit plan | Qualified plan promising a formula-based pension benefit. |
One-participant 401(k) | 401(k) arrangement for an owner-only business or owner plus spouse. |
Tax and Administration Context
Qualified plans can offer deductible employer contributions and tax-deferred growth, but they also require a written plan, eligibility rules, contribution limits, possible Form 5500-series filings, and careful calculation of self-employed compensation.
For self-employed individuals, contribution calculations can be less intuitive because they depend on net earnings from self-employment after certain adjustments. Publication 560 is the main IRS reference for those calculations.
Modern Planning Context
Many people who once would have searched for a Keogh plan now compare SEP IRAs, SIMPLE IRAs, solo 401(k)s, and small-business defined benefit plans. The right structure depends on income, employees, desired contribution level, administrative tolerance, and whether the owner wants employee salary deferrals.
Why the Term Can Be Confusing
The word Keogh can make the plan sound like a unique product, but modern planning usually uses more specific labels. A self-employed person might have a solo 401(k), SEP IRA, SIMPLE IRA, profit-sharing plan, or defined benefit plan. Some of those may be qualified plans, while others are IRA-based arrangements. The contribution limits, filing requirements, employee coverage rules, and administrative costs can be very different.
When reviewing an old statement or tax document, the best next step is to identify the actual plan document and account type rather than relying on the Keogh label alone.
The Bottom Line
A Keogh plan is best understood as a legacy name for a qualified retirement plan used by a self-employed person or unincorporated business. The actual plan design, not the old label, determines the tax rules and contribution limits.