Which type of pension plan can a sole proprietor use only if their employees are included?

The Keogh Pension Plan, also known as a HR-10 Plan, is specifically designed for self-employed individuals, including sole proprietors, and their employees. One of the key features of a Keogh plan is that it allows the business owner to contribute to the pension for themselves as well as their employees, making it distinct from other retirement plans that may cater primarily to the owner without requiring employee participation.

In the context of this question, the requirement for a sole proprietor to include their employees in the plan is a defining characteristic of the Keogh Pension Plan. This is important because these plans aim to provide retirement benefits not just for the owner but for all employees, ensuring equal opportunity for retirement savings.

Other pension plan types mentioned serve different purposes or have different stipulations. For example, a 401(k) Plan typically applies to larger businesses and provides employee participation but may not be limited to sole proprietors and often has more complex compliance requirements. A Simplified Employee Pension (SEP) allows contributions for both the owner and employees but does not operate under the specific conditions outlined in the question. Meanwhile, a Traditional IRA is designed primarily for individual contributors rather than businesses and does not require employee inclusion.

Thus, the Keogh Pension Plan is the only