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Glite Dictionary
Keogh plan

Keogh plan

1 8.1
A retirement savings plan for self-employed people that delays tax until you take the money out
  • noun
  • /kiˈoʊ/
  • Specialized
translation icon : plan Keogh
  • Self-employed individuals can significantly boost their retirement savings by contributing to a Keogh plan, which allows tax-deferred growth.
  • Keogh plan retirement accounts
  • Keogh plan and IRAs
  • accounts like Keogh plan

Examples

  • Have you set up a Keogh plan yet?

  • Many self-employed individuals contribute to a Keogh plan.

  • Consult your accountant to see if a Keogh plan is the right option for you.

  • Many self-employed individuals choose a Keogh plan to save for retirement.

  • The company set up a Keogh plan to help partners defer their taxes.

  • A Keogh plan is designed for self-employed people, enabling them to save for retirement while deferring taxes on their contributions.

  • By choosing a Keogh plan, freelancers can invest a considerable percentage of their income into a tax-deferred retirement account.

Synonyms

pension plan
vsKeogh plan
  • US
27 3.1

Money that an employer or worker saves regularly to give income after you stop working

is tax deferred and offered mainly to self-employed and unincorporated business workers
retirement plan
vsKeogh plan
27 3.0

A set of savings and investments that gives you money after you stop working

is tax deferred and limited to self-employed and unincorporated business workers

Surface Forms

Keogh plan singular
Keogh plans plural

Morphology

Keogh + plan

The element 'Keogh' is a proper name (a surname) that gives no semantic clue to retirement or tax-deferred savings, so knowing 'plan' alone does not let a learner infer the specific institutional meaning. This is a culture- and policy-specific term (US retirement law) whose meaning cannot be derived from its parts, making it opaque to a B1 learner.

Etymology

Keogh plan is named after Congressman Eugene Keogh, who helped make a law so people who worked for themselves could save money for 'retirement'. That's why today a Keogh plan means a special retirement account for self-employed people.