Who is eligible to contribute to an HR-10 plan?

An HR-10 plan, also known as a Keogh plan, is specifically designed for self-employed individuals and unincorporated businesses. This type of retirement plan allows eligible self-employed individuals to make contributions to their retirement savings, providing them with significant tax advantages.

The HR-10 plan was created to give self-employed individuals the ability to save for retirement similarly to how employees of corporations benefit from employer-sponsored retirement plans. This is essential for those who do not have access to traditional corporate retirement plans, enabling them to secure their financial future.

In contrast, large corporations typically have their own retirement plans that do not fall under the HR-10 designation. Government employees and non-profit organization employees are also not eligible, as HR-10 plans are tailored specifically for self-employed individuals who must manage their own retirement savings without the standard employer resources available to other types of employees.