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Thanks for the information!

May I run a hypothetical check by you to see if I understand this?
I looked into the SET and came up with 15% as the SET. According to the 25% money purchase plan, I have to multiply 1/2 the SET (.0765) by the amount on my paycheck. Then I multiply whatever is left by .20. The contributions are to be place quarterly into the account ( 4/15, 7/15, 10/15, and 1/15 of the next year).

Say I make $1,000.00 on one of my paychecks.

$1,000.00 x .0765 = $76.50

Therefore, I have $923.50 left x .2 = $184.70

I may contribute $187.50 of this paycheck into the Keogh money purchase pension plan. Correct?


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