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 $53,000
B)The lower of 13.0435% of employee's taxable compensation or $53,000
C)The lower of 20% of employee's taxable compensation or $53,000
D)The lower of 25% of employee's taxable compensation or $53,000

Question

Quizplus · Accepted Answer

The maximum contribution for a Keogh defined contribution money purchase plan is the lesser of 25% of the employee's taxable compensation or $53,000 (as per 2023 limits).

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