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Subject:  Re: Am I eligible for a Simple/SEP IRA? Date:  3/17/2001  4:42 PM
Author:  W401K Number:  28484 of 88502

My understanding is that a Keogh is basically a Profit Sharing Plan and a money Purchase plan run together. The profit sharing feature only allows for 15% of pay or $25,500 whichever is less. The percentage drops down to 13.04% of pay for self-employed. To attain the full IRS limit, 25% or $35,000, people then make up the rest with a Money Purchase Plan. Once these limits are reached, then the only other option would be a Defined Benefit Plan. There used to be combined limits between Defined Contribution Plans and Defined Benefit Plans, but the IRS repealed this last year. I believe it was section 415(e).

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