Sen. Orrin Hatch, R-Utah, sheltered more than $11,000 in income in 1987 from speaking fees, 15 percent of the $79,926 an aide said Hatch earned in honorariums. The senator gave away $48,899 of the fees in tax-deductible donations but was able to calculate his Keogh retirement contribution on the entire amount, according to his Senate financial disclosure.
Keogh contributions, like IRAs, are deductible. Unlike IRAs they may be taken despite a person's other income. Congress took away all or part of the deductibilty of IRAs for those earning more than $25,000. Keogh contributions, however, may be made only from self-employment income. The program got its name from former Rep. E.J. Keogh, D-N.Y., who with former Sen. Wallace F. Bennett, R-Utah, sponsored the legislation 20 years ago.The Washington Times reported this week that 14 senators and at least 17 House members have such retirement plans. Senators must report them; House members do so voluntarily.
Sen. Robert Dole, R-Kan. showed the largest Keogh plan with between $150,000 and $300,000 in it. (Senators report such amounts by brackets. They do not show exact amounts.) In the Senate, six Democrats and eight Republicans showed Keogh funds. Hatch's totaled between $65,000 and $150,000, including amounts from years before 1987.
In the House, eight Republicans and nine Democrats listed Keogh funds. None of the three Utah members showed such savings.
Some of the funds' totals could represent contributions based on income from other than honorariums. Hatch, for example has had income from books and tapes.
Speech income to Congressmen is considered self-employment pay.