What Is a Keogh Plan?

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A Keogh plan allows small companies and self-employed individuals to establish pension or profit-sharing plans for themselves. Create a Keogh account, which technically falls under the 401C codes, with advice from a financial consultant in this free video on retirement plans.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

Think you want to have a legacy forever with your name involved? Hi, this is Roger Groh at Groh Asset Management. Well, how about creating a very large class of pension plans called Keogh accounts, and then naming them after yourself? There is actually a U.S. congressman whose name is Eugene Keogh, who came up with the idea of enabling smaller companies and self-employed people to establish pension or profit-sharing plans for themselves. Now, either the employee or employer, as in a normal plan, puts money in, and then that money...whatever gain occurs in that is simply deferred until that cash is withdrawn. Can you imagine naming it after yourself? Well, technically, it falls under 401c in the code, but we all call them Keogh accounts. Like any pension or profit-sharing plan, in a Keogh, any investment income or gains is not going to be taxed until you go to withdraw that cash. Once you do withdraw that cash, then that income comes out at whatever your traditional tax rate is. So if you want legacy, become a congressman. If you want to help build assets long-term, think Keogh. I'm Roger Groh at Groh Asset. Thank you for spending time with me.


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