Keogh Act
In the United States,
the unofficial name for the Self-employed Individuals Tax Retirement
Act of 1962. The Keogh Act created a mechanism for self-employed
people to save money for retirement. Under a Keogh plan, also called
an H.R. 10 plan, an eligible person deposits money in a
government-approved account that is managed by
a financial institution, such as an insurance company or a bank.
key employee
In pension planning in the United States,
a highly paid employee who satisfies any one of four criteria
relating to compensation and company ownership. The criteria are
described in legislation and tax rules. The amount of benefits
accrued to key employees in a pension plan, as compared to benefits
accrued to other employees, is the major factor in determining
whether the plan is a top-heavy employee benefit plan. See top-heavy
plan.
key-person insurance
Life insurance purchased by a
business on the life of a person (usually an employee) whose
continued participation in the business is necessary to the firm's
success and whose death or disability would cause financial loss to
the company.
