1- Which of the following is a unique provision of a Keogh (self-employed) plan? a-For Keogh...
1- Which of the following is a unique provision of a Keogh (self-employed) plan?
a-For Keogh profit-sharing plans, there is a promised benefit available to a common-law employee.
b-A Keogh is required to be adopted as a defined contribution plan.
c-A Keogh plan may only cover the self-employed owner-employee.
d-The deduction available for an owner-employee of the business is based on a specified definition of net income.
2-Kelly operates a business as a sole proprietor and maintains a Keogh profit-sharing plan. The contribution rate to this plan is 25%. If Kelly’s net Schedule C income for the business for the year is $100,000 and his deductible self-employment tax is $7,065, what is the amount of Kelly’s deductible contribution to the profit-sharing Keogh plan for the year 2018?
a-$17,174
b-$18,587
c-$25,000
d-$20,000
Homework Answers
1. a unique provision of a Keogh (self-employed) plan is: (b) A Keogh is required to be adopted as a defined contribution plan.
2. Answer is (c) -$25,000
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1- Which of the following is a unique provision of a Keogh
(self-employed) plan?
a-For Keogh...
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