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| Products: | Life & Annuity | Property/Casualty | Other Products | Additional Info. |
Michigan's Insurance Company
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Keogh Who Can Establish a Keogh? Any person who has "net earnings from self-employment" is eligible to establish a Keogh Plan. "Net earnings from self-employment" is defined as earned income (as opposed to investment income) derived from an unincorporated (sole-proprietorship or partnership) trade, business, or profession. A Keogh Plan is established by an employer, and therefore, in the case of a partnership, all partners must agree to the establishment of the plan. However, once the plan is established, neither "owner-employees" nor "self-employed persons" are required to participate unless they so desire. If an employer establishes a Keogh Plan, all full-time common-law employees who have completed two years of service must be covered under the plan. A full-time employee is one whose regular and customary employment is for 1,000 hours or more during a 12-month period. How Much Can Be Contributed? The maximum annual tax-deductible contribution which the employer may make on behalf of each participant in the plan is the lesser of 25 percent of the participant's earned income or $46,000; contributions of a smaller percentage or amount may be provided for in the plan document. Contact your Farm Bureau Insurance agent for more information. Electronic product brochures Monthly E-Newsletters The product information included in the Farm Bureau Insurance of Michigan web site is intended for Michigan residents only, and is neither an offer to sell nor an invitation to purchase any insurance product. |
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