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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.