The term IRA Alternative refers to two different retirement plans: a Keogh plan and an ESOP. A Keogh plan is a type of retirement plan that is available to self-employed individuals or unincorporated businesses. It is funded with pre-tax dollars and allows for tax-deferred growth. An ESOP, or Employee Stock Ownership Plan, is a type of retirement plan that is funded with company stock. It allows employees to become part owners of the company and provides tax benefits to both the employer and employee.