Question 64

Keogh (HR 10) plans were designed to provide retirement benefits for self-employed individuals.

Keogh (HR 10) plans specifically cater to self-employed individuals, allowing them to save for retirement with tax advantages similar to those available to employees of traditional pension plans.

A) educators.

While educators often have access to various retirement plans, Keogh plans are not specifically designed for them. Instead, educators typically participate in pension plans or 403(b) plans, which are tailored for public school employees and non-profit organizations.

B) federal employees.

Federal employees have access to different retirement plans, such as the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS). Keogh plans are not applicable to federal employees, as they are meant for self-employed individuals.

C) healthcare workers.

Healthcare workers may have their own retirement plans, but Keogh plans are not specifically intended for this group. While self-employed healthcare workers might utilize Keogh plans, the option does not encompass all healthcare professionals, many of whom work for employers with different retirement systems.

D) self-employed individuals.

Keogh plans are specifically designed to provide retirement savings options for self-employed individuals, allowing them to contribute a significant portion of their income toward retirement with tax benefits. This makes it the correct answer in the context of the question.

Conclusion

The correct answer is D, as Keogh (HR 10) plans are fundamentally structured to benefit self-employed individuals, providing them with a means to save for retirement. Other options do not accurately reflect the target demographic for Keogh plans, highlighting their specific focus on self-employment and independent work.