Which is Better Keogh or SEP?

Which is Better – Keogh or SEP?

Retirement plans available to a self-employed individual vary wildly from the very fundamental to the complex variety. Among the plans available are the Keogh, SEP, and Defined Benefit and Simple IRA plans.

There are ways to invest gold into a Keogh, but you need to learn to navigate it properly.


  • If a self-employed individual has employees, it may be necessary to include the employees in the plan.
  • With a Keogh plan, you don’t have to cover employees until they have completed at least one year of service (two years in some cases).
  • A SEP is a little different, since you only need to cover employees who have worked for you during three of the past five years.

Because of their complexity and normally high administration costs, the Defined Benefit and Simple IRA plans are not discussed in this article. However, older individuals should take note of the larger retirement contributions available with Defined Benefit plans that could justify the higher administration costs.

Original Source: https://www.lilesco.com/blog/which-is-better-keogh-or-sep/346



0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *