Keogh Plans

For 2013, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $205,000. For 2014, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $210,000.

For the current year, the dollar amount for determining the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period has increased to $1,066,000, while the dollar amount used to determine the lengthening of the 5 year distribution period has increased to $205,000.

A Money purchase plan is a defined benefit contribution plan in which the participant contributes some part of his or her salary and the employer contributes at the same or a different rate. It is also called an individual account plan.