Benefits
The main benefit of a Keogh Plan vs. other retirement plans is that a Keogh Plan has higher contribution limits for some individuals. For 2011, employees can generally contribute up to $16,500 per year, and the employer can contribute up to $32,500, for a total annual contribution of $49,000. The total contribution cap rises to $50,000 for 2012.
A person with a Keogh Plan can also contribute to an IRA (traditional or Roth).
Read more about this topic: Keogh Plan
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