In the US, Keogh Plans are full-fledged pension plans for small businesses and what other type of people?
Retirement plans in the United States as is the case for any other IRA. Keogh plans are full-fledged pension plans for the self-employed. Named for U.S. Representative Eugene James Keogh of New York, they are sometimes called HR10 plans. Plans that do not meet the guidelines required to receive favorable tax treatment are considered "nonqualified" and are exempt from the restrictions placed on qualified plans. They are typically used to provide additional benefits to key or highly paid employees, such as executives and officers. Examples include SERP (Supplemental Executive Retirement Plans) and 457(f) plans. Advocates of Defined contribution plan point out that each employee has the
Retirement plans in the United States be paid upon retirement. The statutory definition of "defined benefit" encompasses all pension plans that are not defined contribution and therefore do not have individual accounts. While this catch-all definition has been interpreted by the courts to capture some hybrid pension plans like cash balance (CB) plans and pension equity plans (PEP), most pension plans offered by large businesses or government agencies are "final average pay" (FAP) plans, under which the monthly benefit is equal to the number of years worked multiplied by the member's salary at retirement multiplied by a factor known as the "accrual rate". At a minimum,