Requirements to Open a Keogh Plan
There are certain requirements an individual must meet in order to open a Keogh plan. Find out more about eligibility for this type of retirement account below.
In general, an employee must be allowed to participate in a Keogh when:
-
The employee reaches age 21, and
-
The employee completes one year of service [two years of service if a plan provides 100% vesting (i.e., the right to an accrued benefit is completely nonforfeitable) after two years of service]., Sole proprietors who consider setting up Keogh plans which cover employees should be advised to consult a knowledgeable pension administrator.