What is a Keogh Plan designed for?

A Keogh Plan, also known as an HR-10 plan, is specifically designed for self-employed individuals and unincorporated businesses. This type of retirement plan allows those who are self-employed or partners in a business to contribute a percentage of their income towards retirement savings. The contributions to a Keogh Plan are tax-deductible, which provides a significant tax benefit for business owners, allowing them to save for retirement while reducing their taxable income.

The structure of a Keogh Plan involves provisions that can be more advantageous for those in unincorporated businesses, as it allows them to create a formal retirement account similar to those available to employees of corporations. This makes it an attractive option for freelancers, independent contractors, and other self-employed individuals.

In contrast, the other options describe business structures that do not fit the primary purpose of a Keogh Plan. Incorporated businesses typically have access to different retirement plans such as 401(k) plans, whereas corporations, regardless of size, generally are not the intended target for Keogh Plans. Nonprofit organizations may offer other types of qualified retirement plans suited for their specific operational structures.