Calculate the maximum allowable Keogh deduction
- Enter1in theCompute maximum allowable contributionfield. 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.
- Instead of calculating the maximum allowable contribution, you can use theTotal Keogh contributionsfield in theKeoghwindow to enter known contributions to the plan. The same limitations apply.
- You can adjust the amount of self-employment earnings to calculate the self-employment deduction. In theKeoghwindow, enter an adjustment in theAdjustment to earned incomefield. Negative entries are subtractions.
