Arturo is a 15% partner in the Franklin Group and has net self-employment income of $250,000 in 2016.The maximum amount that Arturo can contribute to a Keogh money purchase plan is
A)$40,000
B)$46,000
C)$49,000
D)$50,000
E)$62,500

Question

Quizplus · Accepted Answer

Arturo's maximum contribution limit would be calculated as 20% of his net self-employment income or $53,000, whichever is less. Since $53,000 exceeds the IRS contribution limit of $50,000 for 2016, Arturo's maximum contribution would be $50,000.

Arturo Is a 15% Partner in the Franklin Group and Has