Question 76

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 set aside funds for retirement in a tax-advantaged manner.

A) educators.

While educators may benefit from various retirement plans, Keogh plans are not specifically designed for them. They primarily target self-employed individuals rather than employees of educational institutions.

B) federal employees.

Federal employees have access to specific retirement plans such as the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS), but not Keogh plans, which are meant for self-employed individuals.

C) healthcare workers.

Healthcare workers, like educators and federal employees, are not the primary beneficiaries of Keogh plans. These plans do not specifically address the retirement needs of employed healthcare professionals but rather those who are self-employed.

D) self-employed individuals.

Keogh (HR 10) plans are tailored for self-employed individuals, allowing them to contribute to their retirement savings in a flexible and tax-advantaged manner. This makes them the correct answer as the primary target group for these plans.

Conclusion

The correct answer is D) self-employed individuals, as Keogh plans are specifically designed to provide retirement benefits for those who are self-employed. Options A, B, and C do not accurately represent the intended beneficiaries of these plans, highlighting the unique focus of Keogh plans on self-employment in retirement planning.