PSI Life Exam Practice Test 2025 – Comprehensive All-In-One Guide for Exam Success!

Keogh (HR 10) plans are specifically designed for self-employed individuals and their employees. These retirement plans allow self-employed persons to contribute higher amounts toward their retirement than traditional IRAs or other retirement plans. The primary benefit of Keogh plans is that they provide tax advantages for self-employed individuals, making it easier for them to save for retirement while also reducing their taxable income.

The contribution limits are more generous than those for traditional IRA accounts, enabling these individuals to secure their financial future more effectively. This aspect of Keogh plans makes them particularly appealing for self-employed individuals who may not have access to employer-sponsored retirement plans that are available to corporate employees. Other groups, such as retired individuals or full-time college students, typically do not fit the criteria for establishing a Keogh plan since it is aimed specifically at those who earn income as self-employed persons.