Keogh Plan and Gold

Keogh Plan and Investing in Gold

Are you wondering how to maximize your Keogh Plan? Would you like to know if it is possible to add physical gold bullion or precious metals to your existing Keogh Plan? We have some answers for you:

About the Keogh Plan

This plan was introduced in 1962. Eugene Keogh was the founder of this pension plan designed for unincorporated business entities and self-employed workers.

The plan is not open to all self-employed people. For instance, independent contractors are not permitted to open a Keogh plan. In essence, this type of plan is available to self-employed people who run an unincorporated business.

There are two kinds of Keogh Plan. The defined benefit plan and the defined contribution plan. The defined benefit plan works like the traditional pension plan, the only difference being, it is self-funded. The defined contribution plan is a money-purchase or a profit-sharing plan.

Defined Benefit Plan vs Defined Contribution

The paperwork for Keogh Plans is complex, but the plan is ideal for self-employed high-earners. Set-up one of these plans and you are still entitled to contribute to an IRA.

Rollover Rules and Regulations for Keogh Plans

Self-employed people with a Keogh are viewed as employed for rollover purposes. You can rollover all or a proportion of all eligible rollover distributions to a self-directed independent retirement account. This is classed as a tax-free rollover between accounts.

So, any part of a Keogh Plan that is eventually rolled-over to a self-directed IRA will not be counted as income.
A typical withholding limit of twenty percent will apply if the rollover distribution is paid directly to an IRA holder. This can be avoided by conducting a direct rollover.

Types of Gold Accepted in the Keogh Plan

Keogh Plans work much like the standard IRA (Roth and Traditional) and the 401K. The plan can incorporate:

. Individual bonds – government and corporate
. Individual stocks
. Mutual funds
. Certificates of deposit (CDs)
. Exchange-traded funds (ETFs)

Those who have a Keogh Plan cannot invest in bullion or physical gold. The easiest way to invest in a Keogh is to buy a mutual fund that includes mining company stocks or to purchase gold mining stocks. This is known as buying “paper gold”. Purchasing mining ETFs or gold ETFs is an indirect way to invest in gold. You can also rollover Keogh to Gold IRA.

Plan Type Sponsorship 2018 Contribution Limit Roth Option? Allow Gold Stocks? Allow Gold ETFs? Allow Gold Bullion
401(k) Private Employer $18,500 / $55,000 Yes Maybe Maybe No
Solo 401(k) Self-employed $18,500 / $55,000 Yes Yes Yes Yes
Keogh Plan Self-employed or Unincorporated Employer $55,000 No Maybe Maybe No
403(b) Government or Non-profit Employer $18,500 / $55,000 Yes Maybe Maybe No
457(b) Government or Tax-exempt Employer $18,500 / $55,000 Yes Maybe Maybe No
Simple IRA Private Employer $12,500 / $55,000 Yes Yes Yes Maybe
SEP IRA Business Owners & Self-employed $55,000 Yes Yes Yes Maybe
Profit Sharing Plan Private Employer $55,000 No Maybe No No
Money Purchase Plan Private Employer $55,000 No Maybe Maybe No
Annuity Individual None No Maybe Maybe No
ESOP Private Employer Varies Yes Maybe No No
SARSEP Private Employer $55,000 No Yes Yes Maybe
Self Directed IRA Individual $5,500 / $6,500 Yes Yes Yes Yes
Traditional IRA Individual $5,500 / $6,500 Yes Yes Yes No
Precious Metals IRA Individual $5,500 / $6,500 Yes Yes Yes Yes
Thrift Savings Plan (TSP) Government or Military $5,500 No No No No

Invest in “Paper Gold” or Physical Gold?

“Paper gold” stocks are the name given to shares in companies that explore, mine or produce gold. Large companies include the Gold Miners Index (GDX) and the Bugs Index (HUI).

Some investors feel the risk is higher if you invest in gold stocks; however, the value of gold has remained high for centuries. This is why many invest in physical gold. Possible gold stocks risks include:

. Management Risk
. Regulatory Risk
. Flat Currency Risk
.Cost of Production Risk

Rollover Keogh Plan to Precious Metal IRA

Rollover assets from Keogh Plans into a self-directed IRA and you are in total control of your retirement funds. Do this and you have the opportunity to take-out tax-free investments, such as precious metals.

Employer-funded retirement plans like Keogh Plans have their limitations. Precious metal IRAs offer flexibility. Those who have a Keogh Plan must establish a vesting schedule, this means they can only draw funds after a certain length of time. So, it is easy to see why the IRA is such a popular way to invest.

In addition to this, Keogh Plans carry higher fees. Keogh’s are more difficult to maintain than the traditional IRA rollover.

The Advantages of Changing a Percentage of your Retirement Plan to Precious Metals

Investing in gold is an easy and safe way to diversify a retirement portfolio. Palladium, platinum, gold and silver will protect your assets from inflation and the volatile stock market. Gold prices continue to rise and analysts predict further rises.

Investors should consider their date of retirement and tolerance to risk before adding precious metals to their retirement plan. However, it is wise to diversify your retirement portfolio as you receive tax-benefits on precious metal investments.

Choose the Right Gold IRA Company for Your Keogh Plan Rollover

We are often asked to recommend companies who sell bullion and setup precious metal IRA rollovers. However, we conduct impartial reviews and to date we have reviewed in excess of seventy companies. Read our reviews to learn more about the pros and cons of the Keogh Plan.

Rank Company BBB
(Rating A+ to F)
(Rating AAA to F)
TrustLink Storage & Admin Fees
#1 Regal Assets
0 Complaints
0 Complaints
(587 reviews) $250 per year
#2 Capital Gold Group
1 Complaint
10 complaints
(142 reviews) $250 per year
#3 Rosland Capital
7 Complaints
7 Complaints
(21 reviews) $225 per year

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