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I know that the maximum dollar amount for 401k this year is
$10,500 or 25% of gross income. However, I need to know the formula that the IRS allows us to use to calculate this. Why? Because my spouse has a Keogh and the rule for that is 25% max but the formula incorporates 1/2 of S.S. tax and the end result amounts to 20% of income. Is it the same for a 40lK???

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