Are you a self employed individual?

You may establish a Keogh Plan on or before the end of the tax year (December 31st).  Once established, contributions may be made until the tax return deadline for applicable tax year (i.e. April 15).

A Keogh Plan is a type of qualified retirement plan available for self-employed individuals, as well as for those who own unincorporated businesses, or who own more than 10% of a special partnership or a corporation of individuals.

Reasons to open a Keogh Plan?

  • The maximum annual deductible contribution is up to 25% of your net income after the contribution with a limit of $53,000 for the taxable year ending on December 31, 2015, whichever is less.1
  • Accumulated contributions and gains are tax deferred until retirement, which provide you with an important financial planning tool that could assist you in saving for your retirement

Who is eligible?

  • Self-employed individuals
  •  Individuals that own an unincorporated business
  •  Partners of special partnerships who own more than 10% of the partnership, or shareholders who own more than 10% of a corporation of individuals

Why Popular?

  • The trust for the Keogh Plan has been qualified by the Puerto Rico Department of the Treasury.
  • By transferring your Keogh Plan to Popular, we will assume up to $400 of the qualification fees from the Puerto Rico Department of Treasury. If you open a new Keogh Plan, no administrative fees will be charged on the first year of contract and you will also obtain 20% discount on the charges associated with the second year of contract.2
  • Your plan will be administered by the best qualified team in the industry which includes: financial advisors and certified financial planners.
  • Popular is the largest commercial bank in Puerto Rico with a fiduciary services division having more than 50 years of experience and currently managing over $17 billion in trust assets.
  • You can access your account online.

We can visit you at your office or home to help you establish your Keogh Plan. To schedule an appointment call us at 787-281-7272 or click here . Once your Keogh plan is established, you have until the tax return deadline for the following year (i.e. April 15) in order to make your plan contribution.

1The content of this material is for informational purposes only and is not intended as tax advice. Popular de Puerto Rico, its subsidiaries or affiliates, do not engage in the offering of tax, legal or accounting advice. If legal, tax, or accounting assistance is required, the service of a competent professional should be sought. The contributions made to a Keogh Plan may be invested on investment products. Investment products are not insured by the FDIC, are not deposits or obligations, are not guaranteed by Popular de Puerto Rico or its subsidiaries and/or affiliates. Investment products involve risks, including the possible loss of the invested principal.

1Contributions in excess of the deductible limit will pay a tax equivalent to 10% even if the non-deductible contribution is not claimed as a deduction on your income tax return. For 2015, the maximum annual employer and employee contribution amount per participant will be the lesser of $53,000 or 100% of the participant’s Compensation. Also, the maximum compensation per participant to be used for determining contributions to the Plan shall not exceed $265,000.00.

2Certain restrictions apply. Valid only for new plans and accounts transferred from another institution on or before December 31, 2015. A Trustee Fee Agreement for 7 years with Popular Fiduciary Services is required