Annual contributions to a Keogh plan cannot exceed the greater of $54,000 or 100% of compensation.

Question

Quizplus · Accepted Answer

As of my last update in 2023, the contribution limits for a Keogh plan (now more commonly referred to as a solo 401(k) or a self-employed 401(k) for those who are self-employed or own a business with no employees other than a spouse) are adjusted periodically for inflation. For 2023, the contribution limit is the lesser of $66,000 or 100% of compensation, with an additional $6,500 catch-up contribution allowed for those 50 and older, making the total potential contribution $72,500 for those eligible. The $54,000 figure is outdated.

Annual Contributions to a Keogh Plan Cannot Exceed the Greater