A Keogh plan is a tax-deferred retirement savings plan for people who are self-employed, and is much like an IRA. The main difference between a Keogh and an IRA is the contribution limit. Although exact contribution limits depend on the type of Keogh plan (see below), in general a self-employed individual may contribute a maximum of $30,000 to a Keogh plan each year, and deduct that amount from taxable income. The limits for IRAs are much less, of course.