Question 87

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

Keogh (HR 10) plans specifically cater to the retirement needs of self-employed individuals, allowing them to save for retirement in a tax-advantaged manner.

A) educators

While educators often participate in various pension plans or retirement systems, Keogh plans are not specifically designed for them. Educators typically have access to other retirement plans, such as 403(b) plans, rather than Keogh plans.

B) federal employees

Federal employees are covered under different retirement systems, such as the Federal Employees Retirement System (FERS), and do not utilize Keogh plans. Keogh plans are not intended for employees of the federal government.

C) healthcare workers

Healthcare workers may have specific retirement plans based on their employment status and not necessarily Keogh plans. Keogh plans are tailored for self-employed individuals rather than employees in structured workplaces, including healthcare settings.

D) self-employed individuals

Keogh plans are specifically designed to provide retirement benefits for self-employed individuals, allowing them to set aside a portion of their income for retirement. This plan is advantageous for those who do not have access to employer-sponsored retirement plans.

Conclusion

The definitive focus of Keogh (HR 10) plans on self-employed individuals makes option D the correct answer. Options A, B, and C do not align with the primary purpose of these plans, which is to facilitate retirement savings for those who are self-employed and lack traditional retirement plan access.