asked 31.6k views
1 vote
Brandon, age 26, is a self-employed plumber. one month ago, brandon hired his brother, age 20, to help in the business. brandon wants to accumulate a retirement fund and decides to adopt a keogh plan to fund his retirement. brandon's net earnings (after certain adjustments) are $80,000.

a. what is the maximum tax-deductible contribution brandon can make to the keogh plan?

asked
User Ipolevoy
by
7.6k points

1 Answer

4 votes
The maximum you can contribute is 25% of salary up to a maximum of 49,000. Therefore the maximum Brandon can contribute is $20,000 per year.
answered
User Yabada
by
8.1k points
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