The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/williamlipp-writes-ltlti-have-a-keogh-plan-11126622.aspx

Subject:  Re: Keogh Maximum Date:  8/6/1999  2:44 PM
Author:  TMFPixy Number:  12903 of 75383

WilliamLipp writes:

<<I have a Keogh plan with 15% profit share and 10% money purchase. Of course these are nominal numbers, so most years I put away 20% of [(Schedule C profit) minus (50% of SE Tax)]. It looks like 1998 may have been a very good year, though. The various forms are confusing, but it looks to me like the maximum Keogh contribution will be $30,000 (the lower of $30,000 and 20% of $160,000). Is this right?>>

In general, yes it is. You may contribute up to 25% of your compensation or $30K, whichever is less. If you have over $120K in compensation, that means $30K will be the most you can sock away.

Regards..Pixy
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us