Tessa Is a Self-Employed CPA Whose 2017 Net Earnings from Her

Multiple Choice

Tessa is a self-employed CPA whose 2017 net earnings from her business (before the H.R.10 plan contribution but after the deduction for one-half of self-employment taxes) is $400,000.What is the maximum contribution that Tessa can make on her behalf to her H.R.10 (Keogh) plan in 2017?

A) $100,000
B) $80,000
C) $66,250
D) $54,000