What qualified plan is suitable for the self-employed?

The HR-10, also known as Keogh, is specifically designed for self-employed individuals and unincorporated businesses. This plan allows self-employed persons to contribute a significant amount of their earnings toward retirement savings, providing both a defined contribution and defined benefit option. The flexibility in contribution limits makes it particularly attractive as it allows contributions based on the business's income, enabling self-employed individuals to maximize their retirement savings based on their financial situation.

In contrast, while a 401(k) can also be used by the self-employed, it is typically structured for businesses with employees and has different operational requirements. A Simple IRA is designed for small businesses and requires a minimum number of employees to be practical, making it less ideal for sole proprietorships. A Roth IRA is excellent as a retirement savings tool but has income limitations and lower contribution limits compared to a Keogh plan, which may not be as beneficial for someone self-employed looking to save maximally for retirement.

Thus, the HR-10 or Keogh plan stands out as the most suitable and advantageous option for those who are self-employed, providing flexibility and potentially higher contributions suited to their income levels.