If Ken is required to contribute for his employees and choose to contribute the maximum amount, what is the maximum amount can contribute for himself? Ignore any changes and can self-employment tax.

Ken is a self-employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken full-time for the last four years. The office assistant earns $30,600 per year and each drafter earns $40,600. Ken's net earnings from self-employment (after deducting all expenses and one-half of self-employment taxes) are $310,600. Ken is considering whether to establish a SEP plan and has a few questions. Assume that all the employees are at least 21 years old. Required: a. Is he eligible to establish a SEP plan? Yes No