Investment and Finance

A Defined-Contribution Plan is a type of Keogh plan. It is a retirement plan in which a certain amount or percentage of money is set aside each year by a company for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties.
The limitation increased in 2014 from $51000 to $52,000.

A Defined-Benefit Plan is a type of Keogh plan. It is a employer-sponsored retirement plan where employee benefits are calculated based on a formula using factors such as salary history and duration of employment. Investment risk and portfolio management are entirely under the control of the company. There are also restrictions on when and how you can withdraw these funds without penalties.

HR(10) plans are Keogh plans.

To deduct contributions, the Keogh plan must be adopted by the last day of the year ( December 31, for calendar year entities). The funding of the contribution can be made up to the due date of the return for that year including extensions.

A Keogh plan is a tax deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. A Keogh plan can be set up as either a defined-benefit or defined-contribution plan. Contributions are generally tax deductible up to 25% of annual income with a limit of $51,000 ($50,000 in 2012). Keogh plan types include money-purchase plans (used by high-income earners), defined-benefit plans (which have high annual minimums) and profit-sharing plans (which offer annual flexibility based on profits). As with other qualified retirement accounts, funds can be accessed as early as age 59.5 and withdrawals must begin by age 70.5.

The HSA account has three major tax savings. The money contributed into the account is tax deductible, it grows tax free, and certain withdrawals are tax free if they are for qualified medical expenses. To qualify for an HSA account, you must have coverage from a high-deductible health plan and you must not be enrolled in Medicare or be listed as a dependent on another person's tax return.

A HSA account is one created for individuals who are covered under high-deductible health plans (HDHPs) to save for medical expenses that HDHPs do not cover. Contributions are made into the account by the individual or the individual's employer and are limited to a maximum amount each year. The contributions are invested over time and can be used to pay for qualified medical expenses, which include most medical care such as dental, vision and over-the-counter drugs. To use a HSA you must not be enrolled in Medicare Part A or Part B and you must not be a dependent of another taxpayer.

Generally, Box 13 on your W-2 form will be checked. Being covered by a covered employer plan is used in the IRA deduction phase-out rules.

Members of the armed forces serving in a combat zone which is considered tax free can contribute to Traditional and Roth IRA plans.