What does an HR-10 or Keogh plan facilitate?

An HR-10 or Keogh plan is specifically designed to provide a qualified retirement plan for self-employed individuals and unincorporated businesses. These plans allow self-employed people to set aside a significant portion of their income for retirement on a tax-deferred basis. Contributions to HR-10 plans can be made in a manner similar to a traditional retirement plan, allowing for both employee and employer contributions, thus enabling substantial growth of retirement savings over time through investments.

This designation as a retirement plan for self-employed individuals distinguishes it from other types of plans that might cater to government employees, offer low-cost life insurance, or focus on health insurance for small businesses. Each of those alternatives serves different purposes and clientele, making the HR-10 plan unique in its focus on retirement savings for the self-employed.