The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/i-am-trying-to-understand-keogh-plan-tax-10547274.aspx

Subject:  Re: SEP IRA Date:  1/25/1999  8:36 AM
Author:  UnwiseNotFool Number:  8904 of 132160

I am trying to understand Keogh plan tax implications. It seems that for propriators the deductible limit is always less than contribution allowed. As in the previous example, William mentioned 20% contribution. Does that mean that if you contribute 20% to MPP it is fully deductible, or again you have to use a formula to devise a deductible portion? Also, many people make 15+10 split between profit sharing and money purchase plan. Is the nondeductible portion subject to excise tax?
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us