Susan Is a Self-Employed Accountant with a Qualified Defined Contribution

question 169

Multiple Choice

Susan is a self-employed accountant with a qualified defined contribution plan (a Keogh plan) . She has the following income items for the year:
$\begin{array}{lr}\text { Earned income from self-employment } & \$ 50,000 \\\text { Dividend income } & 8,000 \\\text { Interest income } & 2,000 \\\text { Net short-term capital gain } & 12,000 \\\text { Adjusted gross income } & \$ 72,000\end{array}$
What is the maximum amount Susan can deduct as a contribution to her retirement plan in 2014, assuming the self- employment tax rate is 15.3%?

• A) $9,235.
• B) $12,000.
• C) $46,000.
• D) $46,468.
• E) None of the above.

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