The maximum contribution that can be made on behalf of an owner-partner in a Keogh defined contribution money purchase plan is:
A)The lower of 15% of net-self employment income or $53,000
B)The lower of 13.0435% of net-self employment income or $53,000
C)The lower of 20% of net-self employment income or $53,000
D)The lower of 25% of net-self employment income or $53,000

Question

Quizplus · Accepted Answer

The maximum contribution for a Keogh defined contribution money purchase plan is the lower of 20% of net self-employment income or the IRS limit, which was $53,000 for the year in question.

The Maximum Contribution That Can Be Made on Behalf of an Owner-Partner