TIAA-CREF Keoghs are tax-deferred retirement plans for self-employed individuals and their employees. TIAA-CREF offers two types of Keogh plans — profit sharing and money purchase.
They differ in several ways, including:
TIAA-CREF has no front load or surrender charges on Keogh contracts. Although we don't expect to impose service charges on these plans, we reserve the right to do so in the future.
The Nominal Contribution amount is $100.00 for self-employed individual accounts. A partnership could simply place the $100.00 contribution in the account of one partner.
Keogh Only
If you're self-employed and the Keogh is your only retirement plan, the contribution limit is $46,000 or 100% of eligible compensation, whichever is less. Note that the maximum deductible contribution is 25% of eligible compensation. Your tax advisor can assist you in calculating your maximum deduction.
Keogh AND 403(b) Plans
Aggregate contributions to both plans can be no more than $46,000 or 100% of eligible compensation, whichever is less.
Keogh AND Qualified Plans
Contribution limits for the qualified plan and the Keogh are calculated separately. The maximum contribution to each plan can be $46,000 or 100% of eligible compensation, whichever is less. Since the contribution limits are calculated independently, your potential maximum combined contribution amount is $92,000.
You can get in-service cash withdrawals only from a profit-sharing Keogh plan. The employer must elect this option in the prototype. In-service cash withdrawals are not available from a money-purchase Keogh plan.
You make your contributions before taxes, which reduces your taxable salary. Both the contributions and earnings grow tax-deferred until they are withdrawn. If you take money out of your Keogh plan before age 59½, it will be subject to regular income tax and a 10% early distribution penalty.
Find out if you are eligible for a TIAA-CREF Keogh retirement account.
Keogh annuity contract form series G1350. Not available in all states.
TIAA-CREF Individual & Institutional Services, LLC distribute
securities products and Teachers Personal Investors Services, Inc. For more complete information on securities products, please call 1 877 518-9161 for prospectuses. Read them carefully before you invest.
TIAA (Teachers Insurance and Annuity Association), 730 Third Avenue, New York, NY, 10017 issues annuities. Investment products are not FDIC insured, may lose value and are not bank guaranteed.
Learn more about opening a TIAA-CREF Keogh plan.
© 2008 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017
