The Maximum Contribution That Can Be Made on Behalf of an Employee

question 42

Multiple Choice

The maximum contribution that can be made on behalf of an employee in a Keogh defined contribution money purchase plan is:

• A)The lower of 15% of employee's taxable compensation or $55,000
• B)The lower of 13.0435% of employee's taxable compensation or $55,000
• C)The lower of 20% of employee's taxable compensation or $55,000
• D)The lower of 25% of employee's taxable compensation or $55,000