In 2015, Susans sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of

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In 2015, Susan’s sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of self-employment tax).

a. Calculate the maximum amount Susan can deduct for contributions to a defined contribution Keogh plan.

b. Suppose Susan contributes more than the allowable amount to the Keogh plan.

What are the tax consequences to her?

c. Can Susan retire and begin receiving Keogh payments at age 58 without incurring a penalty? Explain.

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Essentials Of Taxation 2016 Individuals And Business Entities

ISBN: 9781305395305

39th Edition

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

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Question Posted: Feb 08, 2024 11:00 AM

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In 2015, Susans sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of

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Essentials Of Taxation 2016 Individuals And Business Entities

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