Glossary
| Term | Definition |
|---|---|
| Keogh Plan |
A tax-deferred retirement plan for self-employed individuals and employees of unincorporated businesses. Keogh plans are similar to IRAs but have significantly higher contribution limits. Distributions from Keogh plans and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59_, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70_, you must begin taking required minimum distributions.
|
| Key Employee |
An employee who has valuable skills, knowledge, or organizational abilities, who is considered critical to the success of a given company.
|
| Key Person Insurance |
Company-owned insurance designed to cover the cost of replacing a key employee if he or she were to die or become disabled.
|