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Keogh Bill Becomes Law.—
The Keogh bill, allowing the nation's self-employed to deduct one-half of their retirement savings, was put on the law books shortly before Congress adjourned.The new law allows self-employed people to deduct from their income taxes one-half of their retirement savings annually. The maximum allowable deduction is $1,250 on a $2,500 set-aside. A deduction may not be claimed on any savings representing more than 10% of income from self-employment.To qualify for the deduction, the self-employed have to provide their employees with more than 3 years' service with a similar retirement plan. The savings for the employee would have to be proportionately as great as those of the employer. The retirement set-aside could not be deducted from the employee's salary. It would have to be in addition to the salary.Income from bonds or stocks would not be allowable in determining total annual income for the
WASHINGTON NEWS. JAMA. 1962;182(3):17–18. doi:10.1001/jama.1962.03050420099039
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