No. of Recommendations: 0
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?


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.