A qualified retirement plan for self-employed individuals established through a sole proprietorship or partnership (it is not designed for individual partners). Keoghs can be established either as defined contribution or defined benefit plans.

Key Employee

A key employee is any employee who, at any time during the plan year containing the determination date for the plan year or the four preceding plan years is: 1. an officer of the employer with annual compensation of more than 50 percent of the dollar limit on annual benefits under a defined benefit plan (i.e., $65,000 in 1999 (50 percent of $130,000) and $67,500 in 2000 (50 percent of $135,000); 2. a top-ten owner of the employer; 3. a 5 percent owner of the employer; or 4. a 1 percent owner of the employer with an annual compensation from the employer of more than $150,000.