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

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