Contributions by a self-employed individual to a Keogh plan for 2013 are limited to the lesser of 20 percent of net earned income or:

Question

Quizplus · Accepted Answer

The contribution limit for a Keogh plan for 2013 is $51,000 or 25% of net earned income, whichever is less. However, the contribution limit for a self-employed individual is limited to 20% of their net earned income, which makes option C the correct answer.

Contributions by a Self-Employed Individual to a Keogh Plan for 2013