What is the meaning of Keogh plan?

Named after Eugene Keogh, a US representative from Brooklyn, NY, Keoghs are qualified retirement plans for self-employed people, small-business owners, and others in similar work situations. Keoghs offer the double benefit of salary reduction and tax-deferred earnings, plus control over how your money is invested. When you withdraw from a Keogh, typically after you retire, you owe income tax on the withdrawal amounts at whatever tax rate you are currently paying. There may be penalties for withdrawals before you reach age 59 1/2, and you may be required to begin withdrawals by age 70 1/2. There are several ways to set up a Keogh using profit sharing, money purchase, or a combination plan. Since the contribution and reporting requirements are complex, it's wise to have professional help in setting up a' Keogh plan'.