Investment and Finance

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.

Yes. You may continue to contribute to your Keogh or SEP plan if you have Self-employment income. You are required to receive a minimum distribution by April 1 of the following year in which you reach age 70 1/2 after age 70 1/2 if you are more than a 5% owner.

Yes. You may continue to contribute to your Keogh or SEP plan if you have Self-employment income. You are required to receive a minimum distribution by April 1 of the following year in which you reach age 70 1/2 after ages 70 1/2 if you are more than a 5% owner.

Unlike a Keogh, which must be set up before the end of the taxable year in which the plan is to be effective, a employer may contribute to a SEP (Simplified Employee Pension IRA) set up by the filing deadline of Form 1040 (generally 4/15/XX) including extensions.

A SEP is an abbreviation for a Simplified Employee Pension IRA. A retirement plan that an employer or self-employed individuals can establish.
The employer is allowed a tax deduction for contributions made to the SEP plan and makes contributions to each eligible employee's SEP IRA on a discretionary basis.
Contributions to SEP IRAs are immediately 100% vested, and the IRA owner directs the investments.

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.

Form 5500 or Form 5500-EZ is required to be filed.

NO. Contributions do not have to be made every year. Contributions must be made based on written allocation formulas and must not discriminate.

The filing deadline for Form 5500 is the last day of the 7th month after the end of the plan year. An extension can be filed if needed.