Pension plans provide individuals with the security that they need to comfortably retire. When an individual obtains a retirement fund or a pension plandefined benefit plandefined contribution plan.
There is a substantial amount of paperwork involved in beginning Keogh plans, though this should not intimidate an individual or deter him/her from opening an account. An employee at an insurance company or a bank may assist an individual with this process. As with the various other types of pension plans, there are many rules and regulations that govern Keogh plans.
In order for an individual to qualify for a Keogh plan, he/she must own a business or be self-employed, or if an individual maintains two different forms of incomes, and one is due to self-employment, then he/she will be able to obtain a Keogh plan. If an individual receives a salary from a company as his/her only means of income, of course, he/she will not be eligible for this pension plan. Likewise, an individual that is retired without any source of income from a business is not permitted to acquire a Keogh plan.
Volunteers are not considered to be self-employed and therefore do not qualify for this form of retirement fund. Individuals who are self-employed and meet all of the eligibility requirements should consider enlisting the assistance of a lender in order to initiate a Keogh plan.