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http://boards.fool.com/williamlipp-ltlti-have-a-keogh-plan-with-15-11126788.aspx
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| Subject: Re: Keogh Maximum | Date: 8/6/1999 3:24 PM | |
| Author: WilliamLipp | Number: 12907 of 87979 | |
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WilliamLipp:<<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?>> TMFPixy: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. As the sole proprietor, I can only sock away a "nominal" 25%, which is a real 20%, and that moves the threshold to $150,000. But it doesn't make any other changes, does it? |
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