I work for a company and also have a small business of my own. In general, your contributions are not taxed until you withdraw money from the plan. In addition, and any qualified contributions made on your behalf by your employer are tax deductible. Most retirement plans that you obtain through your job are qualified plans.
Contributions constitute the biggest expense for an employer.
The employee diverts into the plan a portion of the salary he or she would otherwise receive in cash. Also, employers usually allow employees to change the amount of salary deferred into the plan as the employees' circumstances change. Furthermore, employees are often permitted to make their own investment decisions, and are frequently given access to their retirement funds through loans or hardship withdrawals. A Keogh plan is a qualified plan for self-employed individuals. The term Keogh is not a tax term, and you won't find any reference to it in the Tax Code.