Tessa is a self-employed CPA whose 2017 net earnings from her business (before the H.R.10 plan contribution but after the deduction for one-half of self-employment taxes)is $400,000.What is the maximum contribution that Tessa can make on her behalf to her H.R.10 (Keogh)plan in 2017?
A)$100,000
B)$80,000
C)$66,250
D)$54,000

Question

Quizplus · Accepted Answer

D)For 2017,the maximum earned income taken into account is $270,000 at a 20% net contribution rate,resulting in a $54,000 maximum contribution.

Tessa Is a Self-Employed CPA Whose 2017 Net Earnings from Her