The maximum contribution that can be made on behalf of an employee in a Keogh defined contribution money purchase plan is:
A) The lower of 15% of employee's taxable compensation or $52,000
B) The lower of 13.0435% of employee's taxable compensation or $52,000
C) The lower of 20% of employee's taxable compensation or $52,000
D) The lower of 25% of employee's taxable compensation or $52,000

Question

Quizplus · Accepted Answer

The maximum contribution for a Keogh defined contribution money purchase plan is the lower of 25% of the employee's taxable compensation or the IRS limit, which was $52,000 for the year in question.

The Maximum Contribution That Can Be Made on Behalf of an Employee