We have been looking at retirement planning for the self-employed here at WorkShak for the last few days. Today’s focus is on the Keogh  retirement plan. Usually, a Keogh plan is used when setting up to provide a retirement planning option for your employees. This is also known as an HR 10 plan. However, with a little help from a knowledgeable attorney or accountant, or from the IRS, it is possible to set up a Keogh retirement plan for yourself even if you do not have employees.

There are some specific advantages to having a Keogh retirement plan. Most of the them are similar to what you can get from a self-employed 401(k): pre-tax contributions, tax-deferred growth, 10-year averaging on some lump sums, higher contribution limits.

However, it is worth noting that a Keogh retirement plan can be complex to set up, and there are some rather severe withdrawal penalties. And, there is a required withdrawal once you reach 70 1/2.