Puri is a self-employed Spanish teacher. Her earnings from self-employment before the Keogh deduction but after...

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Puri is a self-employed Spanish teacher. Her earnings from self-employment before the Keogh deduction but after...

Puri is a self-employed Spanish teacher. Her earnings from self-employment before the Keogh deduction but after deducting half of the self-employment tax are $120,000. What is her maximum deductible Keogh contribution for 2018?

Multiple Choice

$96,000.
$54,000.
$30,000.
$24000

business accounting

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Answer 1

Answer #1

Answer is 54000 as per the Keogh plan

Keog Plans Only: if someone is self-employed, and the Keogh account is their only retirement plan, their contribution limit is $55,000 or 100% of eligible compensation, whichever is less for the tax year 2018

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Answer 2

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