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Business, 16.03.2020 22:31 hdhshshs741

Jonathan, age 45, runs a consulting business and is classified as a self-employed individual for income tax purposes. He reports his earnings on Schedule C of Form 1040. His net earnings from self-employment are typically $150,000 per year. Jonathan wants to establish a retirement plan for himself. Which of the following actions is appropriate to shelter the maximum amount of Jonathan's current taxable income? A. He may establish a profit-sharing (Keogh) qualified plan with deductible contributions of 20% of his Schedule C income, as adjusted. B. He should establish a Roth IRA with annual contribution amounts of $6,000.C. He should establish a SIMPLE IRA. D. He should establish a traditional IRA with annual contribution amounts of $6,000.

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