The term 'ALTERNATIVE TO A ROTH IRA' can be summarized as a five-letter word, 'KEOGH'. A Keogh plan is a retirement savings plan that is similar to a Roth IRA but is available to self-employed individuals and small business owners. It offers tax-deferred growth on contributions and distributions are taxed as ordinary income. Contributions are limited to the lesser of 25% of earned income or $56, 000 per year.