What are Keogh plans primarily designed for?

Keogh plans are specifically designed to assist self-employed individuals in saving for retirement. These retirement plans allow business owners and their employees to contribute a portion of their earnings on a tax-deferred basis, similar to the benefits afforded by corporate pension plans.

The key feature of Keogh plans is their contribution limits and the tax advantages they provide, making them an attractive option for self-employed individuals looking to secure their financial future after retirement. They enable individuals with self-employment income to set aside significant amounts of money for retirement, often more than traditional IRAs would allow.

Other options mentioned, such as funding group health insurance or providing insurance for personal loans, do not align with the fundamental purpose of Keogh plans. Additionally, while offering short-term disability coverage is beneficial for many, it is a different type of financial assistance that does not pertain to the retirement savings aspect central to Keogh plans.