What is a Keogh Retirement Plan?

There are several retirement plan options for those who work for an employer, such as 401 K's, and cash balance plans, etc. But what is available for the self-employed worker?

The self-employed worker will have to be very goal oriented in all matters of his business as well as in preparing for his or her retirement. This takes even more discipline than that of the ordinary worker. At the same time, there are more and more people today who seek to become self-employed as those which have already obtained this goal.

The self-employed individual may set aside money for their retirement by making use of a Keogh plan. The Keogh plan is a plan such as the standard IRA, but set up for those which are self-employed. As with an IRA plan, the Keogh plan is tax deferred. This plan is open to self-employed individuals, and partnerships, which are not incorporated.

Many people work a full time job with an employer and are not self-employed. They in return will be able to participate in an IRA. In addition, these same people work as a freelancer part-time in which they are self-employed. By being a freelance worker, they will be able to also participate in a Keogh plan as a way to save for their retirement. They now will have two forms of retirement plans to invest in, thus giving them more money when they retire.