Question 87

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

Keogh (HR 10) plans are specifically tailored to offer retirement benefits for self-employed individuals, allowing them to save for retirement in a tax-advantaged way.

A) educators

While educators often have access to various retirement plans, Keogh plans are not specifically designed for them. Instead, they are meant for self-employed individuals, making this option incorrect in the context of the question.

B) federal employees

Federal employees typically have access to government-sponsored retirement plans, such as the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS). Keogh plans do not apply to this group, thus making this option incorrect.

C) healthcare workers

Healthcare workers, like educators, may have their own retirement plans or benefits through their employers. However, Keogh plans are not aimed at this group specifically, which renders this option incorrect.

D) self-employed individuals

Keogh (HR 10) plans are explicitly designed for self-employed individuals, allowing them to contribute to their retirement savings in a structured manner. This is the correct answer based on the purpose and target audience of Keogh plans.

Conclusion

The correct answer, D, is affirmed as Keogh plans are fundamentally created for self-employed individuals to facilitate their retirement savings. The other options do not align with the specific target group for these retirement plans, highlighting the distinct purpose of Keogh plans in the realm of retirement benefits.