Which type of plan allows business owners to contribute as employees themselves?

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 business owners to make contributions not only for their employees but also as employees themselves. The contributions that self-employed individuals make to a Keogh Plan are tax-deductible and can significantly reduce their taxable income while helping to save for retirement.

In contrast, a 401(k) Plan is generally offered by corporations, allowing employees to make pre-tax contributions, but business owners typically contribute on behalf of their employees rather than as participants themselves. A 403(b) Plan is similar to a 401(k) but is primarily for employees of non-profit organizations, and while business owners can participate as employees in a certain aspect, it does not cater specifically to owner-operators. Lastly, a 457 Plan is typically available to state and local government employees and certain non-profit organizations, and while it does allow contributions from employees, its design does not focus on self-employed individuals like the Keogh Plan does.

By allowing business owners to contribute as employees, the Keogh Plan serves as an effective retirement savings tool tailored for self-employed individuals and small business owners, making it the correct choice in