General Securities Sales Supervisor (Series10) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the General Securities Sales Supervisor (Series 10) Exam. Enhance your skills with multiple choice questions and explanations. Master your exam with detailed insights and tips!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the required contribution for an employee earning $20,000 included in a doctor's Keogh Plan?

A $2,000
B $3,000
C $4,000
D $5,000

The correct answer is: D $5,000

In a doctor's Keogh Plan, the required contribution can be based on the employee's income and the contribution limits established by the IRS. For Keogh Plans, the maximum contribution is generally calculated based on a percentage of the employee's compensation. For 2023, self-employed individuals can contribute up to 25% of their net earnings from self-employment to a Keogh Plan, which maximizes the total contribution limit for qualified plans. In this case, if the employee earns $20,000, calculating 25% of that figure would yield a contribution of $5,000. This contribution amount aligns with the allowable limits, ensuring that the plan holder maximizes their potential tax-deferred savings while adhering to IRS guidelines. It represents a strategy to capitalize on retirement savings opportunities, especially for self-employed individuals and small business owners.