Calculate the maximum allowable Keogh deduction

  1. Enter
    1
    in the
    Compute maximum allowable contribution
    field. The system calculates the maximum deduction automatically. The maximum amount is $53,000 or 20% of net earnings from self-employment, depending on which is smallest.
  2. Instead of calculating the maximum allowable contribution, you can use the
    Total Keogh contributions
    field in the
    Keogh
    window to enter known contributions to the plan. The same limitations apply.
  3. You can adjust the amount of self-employment earnings to calculate the self-employment deduction. In the
    Keogh
    window, enter an adjustment in the
    Adjustment to earned income
    field. Negative entries are subtractions.
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