Which type of retirement account is specifically designed for self-employed individuals?

The HR10, commonly referred to as a Keogh plan, is specifically designed to cater to self-employed individuals and small business owners. This retirement account allows these individuals to contribute a significant amount toward their retirement, often more than what is permitted in other types of retirement accounts.

Keogh plans are flexible in terms of contribution limits and can be structured as either defined benefit plans or defined contribution plans, which adds to their appeal for those self-employed. They enable self-employed individuals to potentially save for retirement in a way that aligns with the unpredictability of income that often comes with self-employment.

In contrast, while Traditional IRAs, 401(k)s, and SIMPLE IRAs can also be utilized by self-employed individuals, they are not specifically designed for them. Traditional IRAs have lower contribution limits compared to Keogh plans, and 401(k)s are more commonly associated with larger businesses. SIMPLE IRAs, while beneficial for small businesses, serve different operational functionalities and have their own contribution limits. Therefore, the Keogh plan stands out as the most tailored retirement account option for self-employed persons.