He sets up an individual 401(k)
Chapter4: Income Tax Withholding
Section: Chapter Questions
Problem 7QR
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Required information
[The following information applies to the questions displayed below.]
Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2022). In 2022, his net Schedule C
income was $260,000. This was his only source of income. This year, Reggie is considering setting up a retirement plan.
What is the maximum amount he may contribute to the self-employed plan in each of the following situations?
Note: Round your intermediate calculations to the nearest whole dollar amount.
a. He sets up a SEP IRA.
Maximum contribution
$ 52,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5bf0e6d-ab1a-4cd5-be90-d881ef1ac3d0%2Fad1bdad7-b179-4f22-9576-556057005ae1%2Fq4ovasi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
ces
Required information
[The following information applies to the questions displayed below.]
Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2022). In 2022, his net Schedule C
income was $260,000. This was his only source of income. This year, Reggie is considering setting up a retirement plan.
What is the maximum amount he may contribute to the self-employed plan in each of the following situations?
Note: Round your intermediate calculations to the nearest whole dollar amount.
a. He sets up a SEP IRA.
Maximum contribution
$ 52,000
![Required information
[The following information applies to the questions displayed below.]
Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2022). In 2022, his net Schedule C
income was $260,000. This was his only source of income. This year, Reggie is considering setting up a retirement plan.
What is the maximum amount he may contribute to the self-employed plan in each of the following situations?
Note: Round your intermediate calculations to the nearest whole dollar amount.
b. He sets up an individual 401(k).
Maximum contribution
$ 65,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5bf0e6d-ab1a-4cd5-be90-d881ef1ac3d0%2Fad1bdad7-b179-4f22-9576-556057005ae1%2Fqf2n6v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2022). In 2022, his net Schedule C
income was $260,000. This was his only source of income. This year, Reggie is considering setting up a retirement plan.
What is the maximum amount he may contribute to the self-employed plan in each of the following situations?
Note: Round your intermediate calculations to the nearest whole dollar amount.
b. He sets up an individual 401(k).
Maximum contribution
$ 65,000
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