What Does Keogh Plan (HR-10) Mean?
Keogh Plan, or HR-10, is a retirement plan for small business owners, sole proprietors, and self-employed individuals. It is named after the New York congressman Eugene Keogh who was responsible for passing this plan into law in 1962.
Insuranceopedia Explains Keogh Plan (HR-10)
HR-10 is either a defined benefit plan or a defined contribution plan. The former specifies how much money a person gets at the age of retirement after a computation that includes salary and length of employment. The latter specifies how much money should be placed into the retirement plan. This plan is famous because of its high contribution compared to other retirement plans. As of 2014, the contribution cap is $52,000. The disadvantage to this plan is that setting this up costs more and it also involves more paperwork compared to other retirement plans.