Reg 2 Module 1

Question 1

Up to what amount can you deduct for an IRA

Answer 1

5,500 per person. With income thresholds and employee pension limitations

Question 2

Keogh (profit sharing) Plans Formula

Answer 2

Business Income 
(Business Expenses)
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Net Business Income 
(1/2 self-employment tax)
(Keogh Deduction)
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Keogh Net Earnings

Question 3

What is the Keogh (Profit Sharing Plan)

Answer 3

a self-employed taxpayer subject to self-employment is generally allowed to set up a Keogh Retirement Plan.

Question 4

What is the Maximum Annual deductible amount

Answer 4

lesser of 55,000

or 20% of Keogh Net earnings ( after 1/2 tax deducted.)

Question 5

What is the annual addition (Contribution)

Answer 5

Lesser of 55,000 or

100% of net earnings

Question 6

Income does not include

Answer 6

Inheritance and proceeds from a lawsuit for physical injuries

Question 7

When a spouse is an active participant in the IRA Plan provided by the employer., at what amount does the phase out start

Answer 7

189,000 in wages

Question 8

For Keogh plans, earned inckme is defined as net self - employment earnings (Bus Inc. - Bus Exp. ) reduced by:

Answer 8

• The amount of the Allowable Keogh Deduction

- 1/2 the self employment tax.

Question 9

Self Employed health insurance help you arrive to

Answer 9

Adjusted gross income