Under the Keogh plan provisions, deductible contributions to a qualified retirement plan on behalf of a self-employed individual whose net earned income is $20,000 are limited to:

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Under the Keogh plan, self-employed individuals can contribute up to 20% of their net earnings from self-employment, after subtracting the self-employment tax. For $20,000 net income, the contribution limit is $4,000 (20% of $20,000).

Under the Keogh Plan Provisions, Deductible Contributions to a Qualified