The National Directory of Certified Public Accountants

Ask A CPA - Keogh Plans

What Is A Defined-Contribution Plan?

A Defined-Contribution Plan is a type of Keogh plan. It is a retirement plan in which a certain amount or percentage of money is set aside each year by a company for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties. The limitation increased in 2014 from $51000 to $52,000.

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