Keogh plans are basically retirement plans for self-employed people and unincorporated businesses, like sole proprietorships and partnerships.
An independent contractor or self-employed person cannot set up and use a Keogh plan for retirement.
Keogh plans are referred to as qualified plans by the IRS, and they are of two types: defined-contribution plans, including profit-sharing plans and money purchase plans, and defined-benefit plans, that is sometimes known as HR(10) plans.
Like 401(k)s and IRAs Keogh plans too can invest in the same set of securities, including stocks, bonds, certificates of deposits, and annuities.