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.
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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.
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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.
