Sergio Is a 15% Partner in the Hopkins Group and Has

question 66

Multiple Choice

Sergio is a 15% partner in the Hopkins Group and has net self-employment income of $100,000 in 2014. The maximum amount that Sergio can contribute to a Keogh money purchase plan is

• A) $3,000
• B) $13,045
• C) $20,000
• D) $25,000
• E) $50,000

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Definitions:

Retirement Plan

A financial strategy designed to help individuals save and invest money to provide for financial security in their retirement years.

Single Investment

A one-time contribution of funds to a particular investment vehicle.

Indexed Annuity

A type of annuity that earns returns on contributions based on a specified equity-based index.

Compounded Quarterly

A method of calculating interest where the interest is added to the principal four times a year.