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Keogh Bill Clears Congress.—
Congress approved the Keogh bill authorizing self-employed persons such as dentists, farmers, lawyers, and physicians to deduct their savings for retirement from income taxes. Since the Treasury Department opposed passage of the measure this year, there was a chance that President Kennedy would kill the bill through a "pocket veto."In the event that the measure is signed into law, self-employed persons will be able to claim a tax deduction of as much as $1,250 a year for retirement plan savings.No tax deduction is allowable now for retirement savings by the self-employed. Corporations may claim a full deduction for money they set aside for employees' pensions. This is often the full amount of the pension savings.The bill permits self-employed persons to deduct 50% of their contribution to a retirement plan with a maximum deduction of $1,250 (for a contribution of $2,500), or 10% of
WASHINGTON NEWS. JAMA. 1962;182(1):A15–A17. doi:10.1001/jama.1962.03050400107043
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