What is the contribution limit for a Keogh Plan per year?

The contribution limit for a Keogh Plan, which is a retirement plan designed for self-employed individuals and small business owners, is set at a maximum amount that can be contributed annually. As of the latest guidelines, individuals can contribute up to $56,000 per year to their Keogh Plan, highlighting the plan's appeal for those looking to save significantly for retirement. This limit allows a substantial tax-deferred savings option, essential for self-employed individuals who may not have access to traditional employer-sponsored retirement plans.

In addition to the overall contribution limit, it’s important to note that if the individual is also receiving self-employment income, they can calculate their contributions as a percentage of their income, which can potentially increase the total contribution allowed. This makes the Keogh Plan a highly beneficial option for those who own their own businesses and seek to maximize their retirement savings.