NOTE: Effective December 31, 2012, TIAA-CREF no longer issues new Keogh employer plans. If you already have a TIAA-CREF Keogh, you may continue to add employees to the existing plan.


TIAA-CREF Keoghs are tax-deferred retirement plans for self-employed individuals and their employees. TIAA-CREF issued two types of Keogh plans — Profit Sharing and Money Purchase.

Profit Sharing and Money Purchase Keogh differ in these ways:


Expenses

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.

Contribution Limits

Keogh Only

If you’re self-employed and the Keogh is your only retirement plan, the contribution limit is $51,000 for 2013, $52,000 for 2014, $53,000 for 2015 or 100% of eligible compensation, whichever is less. 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

If you participate in both a 403(b) and a Keogh plan, then the contribution made to both plans cannot exceed $51,000 in 2013 and $52,000 in 2014, or 100% of eligible compensation.


Keogh AND Other Plans

If you participate in both a Keogh plan and another defined contribution plan, such as a 403(b) or 401(k), then the contribution made to both plans cannot exceed $51,000 for 2013, $52,000 for 2014, $53,000 for 2015 or 100% of eligible compensation.

Liquidity

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.

Taxation

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 Both the contributions and earnings grow tax-deferred until they are withdrawn.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.

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