Harvey is a self-employed accountant with earned income from the business of $120,000 (after the deduction for one-half of his s

Question

3 years ago

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Harvey is a self-employed accountant with earned income from the business of $120,000 (after the deduction for one-half of his s

elf-employment tax). He has a profit-sharing plan (e.g., defined contribution Keogh plan). What is the maximum amount Harvey can contribute to his retirement plan in 2019? $

Business

1 answer:

Finger [1] · Answer 1 · 2022-06-16T16:58:34+03:00

Answer:

The maximum amount Harvey can contribute to his retirement plan in 2019 is $30,000.

Explanation:

According to Keogh plan the maximum amount Harvey can contribute to his retirement plan in 2019 is 25% over the amount Harvey earned Or 53,000 Whichever is less.

Thus,

Harvey is a self-employed accountant with earned income from the business of $120,000 and its 25% is $30,000.