Problem 19-38 (lo. 2, 4, 5, 6) in 2018, susan's sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of self-employment tax). a. the maximum amount that susan can deduct for contributions to a defined contribution keogh plan is $ 55,000 . feedback self-employed individuals (e. g., partners and sole proprietors) and their employees are eligible to receive qualified retirement benefits under the simple plans or under what are known as h. r. 10 (keogh) plans. contributions and benefits of a self-employed person now are subject to the general corporate provisions, putting self-employed persons on a parity with corporate employees. consequently, keogh plans can provide a self-employed person with an adequate retirement base. b. suppose susan contributes more than the allowable amount to the keogh plan. what are the consequences to her? contributions in excess of the allowable amount under § 415 are not deductible, and they may be subject to a 0 % excise tax. feedback partially correct c. can susan retire and begin receiving keogh payments at age 58 without incurring a penalty? no , because susan may receive payments starting at age 59½