Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2020? b. If Amber elects salary deferral treatment for the above amount, how much can she save in taxes? Her tax liability for 2020 would be reduced by $ c. What is the recommended amount that Amber should elect as salary deferral treatment for 2020?
Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2020? b. If Amber elects salary deferral treatment for the above amount, how much can she save in taxes? Her tax liability for 2020 would be reduced by $ c. What is the recommended amount that Amber should elect as salary deferral treatment for 2020?
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 10P
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Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old.
a. What is the maximum amount Amber can elect for salary deferral treatment for 2020?
b. If Amber elects salary deferral treatment for the above amount, how much can she save in taxes?
Her tax liability for 2020 would be reduced by $
c. What is the recommended amount that Amber should elect as salary deferral treatment for 2020?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT