Mrs. Connelly, a self-employed individual, maintains a defined-contribution Keogh plan. Regardless of the amount of her self-employment income, Mrs. Connelly may contribute $50,000 to the Keogh plan in 2012.

Question

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The contribution limit for a defined-contribution Keogh plan in 2012 was the lesser of $50,000 or 25% of the individual's self-employment income.

Mrs Connelly, a Self-Employed Individual, Maintains a Defined-Contribution Keogh Plan