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Author: WilliamLipp Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76398  
Subject: Re: Keogh Maximum Date: 8/6/1999 3:24 PM
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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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