Mariette, age 29, earns $200,000 per year. Her employer, Taxes Are Us, sponsors a qualified profit sharing 401(k) plan and allocates all plan forfeitures to remaining participants. The ADP of the non-highly compensated is 2%. If in the current year, Taxes Are Us makes a 20% contribution to all employees and allocates $5,000 of forfeitures to Mariette's profit sharing plan account, what is the maximum Mariette can defer to the 401(k) plan in 2021? O $19,500 O $58,000 $13,000 $8,000
Mariette, age 29, earns $200,000 per year. Her employer, Taxes Are Us, sponsors a qualified profit sharing 401(k) plan and allocates all plan forfeitures to remaining participants. The ADP of the non-highly compensated is 2%. If in the current year, Taxes Are Us makes a 20% contribution to all employees and allocates $5,000 of forfeitures to Mariette's profit sharing plan account, what is the maximum Mariette can defer to the 401(k) plan in 2021? O $19,500 O $58,000 $13,000 $8,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mariette, age 29, earns $200,000 per year. Her employer, Taxes Are Us, sponsors a qualified profit sharing 401(k) plan and
allocates all plan forfeitures to remaining participants. The ADP of the non-highly compensated is 2%. If in the current year,
Taxes Are Us makes a 20% contribution to all employees and allocates $5,000 of forfeitures to Mariette's profit sharing plan
account, what is the maximum Mariette can defer to the 401(k) plan in 2021?
O $19,500
O $58,000
$13,000
$8,000
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