Jared, age 54, earns $300,000 per year and is a participant in his employer's 401(k) plan. Ignoring the ADP Test requirements, what is the maximum amount that Jared can defer under the 401(k) plan in 2019?
Jared, age 54, earns $300,000 per year and is a participant in his employer's 401(k) plan. Ignoring the ADP Test requirements, what is the maximum amount that Jared can defer under the 401(k) plan in 2019?
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 38P
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![Jared, age 54, earns $300,000 per year and is a participant in his employer's 401(k) plan. Ignoring the
ADP Test requirements, what is the maximum amount that Jared can defer under the 401(k) plan in
2019?
O $19,000.
$25,000.
O $56,000.
O $62,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04bdff60-33d3-4378-b6e9-779f2e3749f6%2Fb49bc408-318d-470e-a2d5-776142180321%2Fjaw3nq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jared, age 54, earns $300,000 per year and is a participant in his employer's 401(k) plan. Ignoring the
ADP Test requirements, what is the maximum amount that Jared can defer under the 401(k) plan in
2019?
O $19,000.
$25,000.
O $56,000.
O $62,000.
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Step 1: Steps to calculate maximum amount Jared can defer under the 401(k) plan in 2019
VIEWStep 2: Determine the maximum deferral limit for participants under the age of 50.
VIEWStep 3: Determine if Jared qualifies for any additional catch-up contributions.
VIEWStep 4: Add the maximum deferral restriction to any catch-up contributions
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