No. of Recommendations: 0
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?
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!
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.