This calculator is designed to determine the maximum contribution to a Keogh plan based on the retirement plan limit and the self-employment (SE) income. The model calculates SE tax and adjusts the answer for W-2 income that might offset SE tax.
Maximum covered compensation
Input the maximum covered compensation for the current year.
Maximum contribution – IRC §415(c)
Input the maximum contribution to DC plans for the current year.
Social Security Wage Base
Enter the Social Security wage base for the current year.
Plan contribution rate
The plan contribution rate cannot exceed 25%.
W-2 income that may offset SE tax
Self employment income
Calculated SE Tax
Net SE Income
Less 1/2 SE Tax
Adjusted Net SE income
Maximum Retirement Plan Contribution