A Keogh plan is designed for whom?

A Keogh plan, also known as a HR10 plan, is specifically designed for self-employed individuals and their businesses. It allows these individuals to set aside a portion of their income for retirement, providing tax advantages similar to those found in other retirement plans like 401(k)s. The unique aspect of a Keogh plan is that it can accommodate higher contribution limits compared to other retirement accounts, which is particularly beneficial for self-employed individuals who may not have access to employer-sponsored retirement plans.

In contrast, the other options refer to specific types of employment and retirement plans that are tailored to those groups. Employees of a corporation typically participate in employer-sponsored plans, while state government employees may have access to pension plans or other defined benefit plans. Non-profit organization employees often have retirement options under different regulations, commonly 403(b) plans, rather than a Keogh plan. Thus, the structure and purpose of a Keogh plan clearly align with the needs of self-employed individuals.