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Hi, I could use some help with a Keogh plan I am about to open. I am opting to contribute 25% of self employment income into this plan. How do I calculate the correct amount of money to contribute? I initially assumed I would multiply .25 by the amount on my paycheck, but I was subsequently told by a tax lawyer that the amount would be somewhere in the neighborhood of 20%, as the 25% contribution rule is not that simple. Does anyone know how to calculate the correct contribution amount? This will be a money purchase pension with a 25% fixed contribution.


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