The allowable amount a person can contribute to a Keogh plan a. is set by the U. S. Treasury. c. is $10,000 a year. b. is 59 1/2 percent. d. changes periodically.

Question

Ashanti Arnold

Business

10 October, 01:01

The allowable amount a person can contribute to a Keogh plan a. is set by the U. S. Treasury. c. is $10,000 a year. b. is 59 1/2 percent. d. changes periodically.

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Answers (2)

Know the Answer?

Yareli Barron · Answer 1

The allowable amount a person can contribute to a Keogh plan is 59 1/2 percent.

Reese Proctor · Answer 2

D) changes periodically.

Explanation:

During last year, 2019, the largest amount that an individual could contribute t a Keogh plan was either 25% of total salary or $56,000, whichever is less. This amount increases each year, for 2020 it will be $57,000, previously it was $50,000 for 2012, $51,000 for 2013, etc.

A Keogh plan is a retirement plan that is most commonly used by self-employed people or unincorporated businesses. You can start accessing funds when you are 59 1/2 years old, but your monthly withdrawals start when you are 70 1/2.