PSI Life Exam Practice Test

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Prepare for the PSI Life Exam with comprehensive tests. Utilize flashcards and multiple-choice questions, complete with hints and explanations for each question. Achieve exam success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Keogh (HR 10) plans are primarily designed for which group?

Corporate employees
Self-employed individuals
Retired individuals
Full-time college students

The correct answer is: Self-employed individuals

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.