Bert Johnson, a sole proprietor with no employees, has a Keogh profit sharing plan to which he

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Bert Johnson, a sole proprietor with no employees, has a Keogh profit sharing plan to which he may contribute 25% of his annual earned income. For this purpose, “earned income” is defined as net self-employment earnings reduced by the:

a. Deductible Keogh contribution.

b. Self-employment tax.

c. Self-employment tax and one-half of the deductible Keogh contribution.

d. Deductible Keogh contribution and one-half of the self-employment tax.

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South-Western Federal Taxation 2020 Comprehensive

ISBN: 9780357109144

43rd Edition

Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman

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