Secure Your Retirement with a Keogh Plan

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Keogh Calculator

Using our Keogh plan calculator to estimate your retirement income utilizing an annuity, you can benefit from a guaranteed income for the rest of your life, even after the plan runs out of money. An annuity is an investment that provides a steady income stream, typically for the rest of the investor’s life. By choosing an annuity option for your Keogh retirement plan, you can have peace of mind knowing that you will have a guaranteed source of income in retirement, regardless of market conditions or the performance of your investments.

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Understanding Keogh Plans

What Is A Keogh Plan?

A Keogh plan is a retirement savings vehicle designed specifically for self-employed individuals and small business owners. It offers tax-deferred growth on investments and allows for higher contribution limits than many other retirement plans. This means you can save more for retirement while enjoying tax benefits today.

Types Of Keogh Plans

  1. Defined Benefit Plans: These plans promise a specified monthly benefit at retirement, often based on salary and years of service. They offer predictable retirement income but require careful planning and management.
  2. Defined Contribution Plans: With these plans, contributions are fixed annually, and retirement benefits depend on investment performance. A popular option is the profit-sharing plan, which provides flexibility and potential for significant growth based on business profits.

Benefits Of A Keogh Plan

  • Tax-Deferred Growth: Contributions grow without being taxed until withdrawal, maximizing the compounding effect.
  • Tax Deductions: Contributions reduce your taxable income, offering immediate tax savings.
  • Flexibility: Choose between defined benefit and defined contribution plans based on your retirement goals.
  • Control: Manage your investments to align with your risk tolerance and financial objectives.
  • Higher Contribution Limits: Compared to SEP IRAs and Solo 401(k)s, Keogh plans often allow for larger contributions, benefiting high-income earners.

How We Can Help

At The Annuity Expert, we understand that planning for retirement can be overwhelming. Our mission is to help you find the best solutions at the lowest costs. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we have the expertise to guide you through every step of the process.

  • Symptoms of the Problem
  • Our Expertise
    • We have dedicated our careers to understanding the intricacies of retirement planning, particularly for self-employed individuals and small business owners. Our deep knowledge and experience allow us to provide tailored advice that addresses your specific needs and concerns.
  • Our Commitment
    • We believe in offering transparent, cost-effective solutions. We fight to ensure you get the most value from your retirement plan without unnecessary fees or hidden costs. Your financial well-being is our top priority.
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What We Recommend

  • Step 1: Initial Consultation
    • Schedule a free consultation with us. During this session, we will assess your current financial situation, retirement goals, and any existing retirement plans. The main benefit is clearly understanding your retirement needs and how a Keogh plan can fit into your strategy.
  • Step 2: Customized Plan Development
    • Based on the initial consultation, we will develop a personalized retirement plan tailored to your goals. This includes selecting the right type of Keogh plan, estimating contributions, and choosing suitable investments. The main benefit is having a detailed, actionable plan that maximizes your retirement savings potential.
  • Step 3: Ongoing Support and Management
    • Once your Keogh plan is set up, we provide continuous support to manage and adjust your plan as needed. This includes regular reviews, performance tracking, and strategic adjustments. The main benefit is peace of mind, knowing your retirement plan is actively managed to adapt to changing circumstances and goals.

Features and Benefits

  • Expert Advice: Our knowledge ensures you make informed decisions.
  • Personalized Service: Tailored plans that reflect your unique situation.
  • Continuous Management: Ongoing support to keep your plan on track.
  • Transparent Costs: Clear, upfront information about fees and charges.

Common Objections

  • Complexity: We simplify the process and handle the details for you.
  • Cost: Our transparent fee structure ensures you understand the costs involved, with no hidden charges.
  • Time: We respect your time and make planning as efficient as possible.

Without expert guidance, you may miss out on maximizing your retirement savings, face unnecessary tax burdens, or choose investments that do not align with your goals. Working with us ensures you have a clear, strategic plan tailored to your needs.

By partnering with The Annuity Expert, you’ll experience confidence and peace of mind knowing your retirement is secure. With a clear plan and ongoing support, you’ll feel empowered, leading to a stress-free retirement.

Contact us today for free advice or to get a free quote. Secure your financial future with a Keogh plan tailored to your needs.

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Who is eligible for a Keogh plan?

Self-employed individuals and small business owners are eligible for a Keogh plan.

What is the contribution limit for a Keogh plan?

The contribution limit for a Keogh plan varies depending on the type of plan and the individual’s income. For defined contribution plans, the contribution limit is generally the lesser of 25% of the participant’s compensation or $66,000 for 2023. The contribution limit is determined by a complex formula based on the participant’s age and compensation for defined benefit plans.

What’s the difference between a Keogh and 401k plan?

A Keogh plan is for self-employed individuals and small business owners. It offers more flexibility and higher contribution limits compared to a 401k plan employers offer for their employees and has pre-tax contributions and tax-free growth.

What’s the difference between an IRA and Keogh plan?

An IRA (Individual Retirement Account) is a retirement savings plan for individuals, while a Keogh plan is for self-employed individuals and small business owners. An IRA offers tax benefits for contributions and growth, while a Keogh offers higher contribution limits and investment options.

Can you have both a Keogh and a 401k?

No, you can not roll a Keogh into a 401k plan. However, you can roll a Keogh into a traditional IRA.

Can I convert a Keogh to a Roth IRA?

Yes, converting a Keogh plan into a Roth IRA is possible.

When can you withdraw from a Keogh?

You can withdraw from a Keogh plan at retirement age (59 1/2), subject to taxes and penalties.

Are withdrawals from a Keogh plan taxable?

Yes, withdrawals from a Keogh plan are taxed as ordinary income.

What is a critical difference between an IRA and Keogh plan is:

IRA is for individuals; Keogh is for self-employed.

Do Keogh’s plans still exist?

Yes, Keogh plans, also known as HR-10 plans, still exist. They are tax-advantaged retirement savings plans for self-employed individuals and small business owners. Though less common today, with alternatives like SEP IRAs and Solo 401ks being more popular, Keogh plans can still be used and offer different contribution limits and options.

What is an example of a Keogh plan?

A Keogh plan is a retirement savings option for self-employed individuals or small business owners. An example would be a self-employed consultant setting up a Keogh plan to save for retirement, allowing for tax-deductible contributions. There are different Keogh plans, such as defined-benefit and defined-contribution plans, each with specific rules and limits.

What are the benefits of a Keogh plan?

A Keogh plan offers benefits such as higher contribution limits than other retirement plans, tax-deferred growth, and potential tax deductions for contributions. It provides flexibility in choosing between defined-benefit or defined-contribution structures, catering to different financial goals. However, it’s known for having more complexity and administrative requirements than other options.

Who were Keogh plans designed to help?

Keogh plans were established in 1962 to provide retirement savings options for self-employed individuals and small business owners. These tax-deferred plans allow individuals to contribute a percentage of their income towards their retirement. Keogh plans offer flexibility and higher contribution limits compared to traditional Individual Retirement Accounts (IRAs).

What are the Keogh plan rules?

The Keogh plan rules, also known as HR10 plans, are retirement plans designed for self-employed individuals. These plans have specific guidelines and contribution limits set by the IRS. The Keogh plan rules require annual contributions and allow for tax-deferred growth until retirement. Self-employed individuals need to understand these rules and consult a financial advisor for guidance.

Are Keogh plans tax deductible?

Yes, contributions to Keogh plans are tax-deductible for self-employed individuals and their employees. This allows for reducing taxable income while saving for retirement.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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