Kathy is 60 years of age and self-employed. During 2022 she reported $508,000 of revenues and $104,000 of expenses relating to her self-employmentactivities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to a SEP IRA for 2022? Assume she pays$28,981 in self-employment tax for 2022.Note: Round your final answer to the nearest whole number.Multiple ChoiceО$61,000О$70,200О$80,190О$91,520

The SEP Plan contribution limit for self employed individuals is 25% of the net income from the…

Answered: Kathy is 60 years of age and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6. An employee, who had been with the company for 6 years, passed away on August 31, 2021. She had been earning a monthly salary of $5,900 and had regular CPP and El deductions taken off this salary on every cheque up to and including her August 31 payment. Calculate: a) Her maximum CPP contribution for the year. b) How much should be refunded to her estate, if any? cpp rate 5.45% cpp annual basic exemption $3,500 maximum insurable earnings $56,300 premium rate 1.58% Maximum annual employee premium $889.54
1 Julia is turning 65 in June 1, 2022. She wants to stop paying into CPP. As she gets paid twice a month and her gross pay is $3,500 for every pay check, what is her CPP contribution for 2022? What is her CPP deductions from each pay period? How much does her employer have to remit to CRA each pay period? Please show the calculations.
Bernie is a former executive who is retired. This year Bernie received $192,500 in pension payments and $19,600 of social security payments. What amount must Bernie include in his gross income? Multiple Choice 1. $192,500. 2. $202,300. 3. $209,160. 4. $212,100. 5. Zero.
D’von works for a company that matches his 401(k) retirement contributions at a rate of “$0.50 per $1” of his contributions, up to 6% of his salary. D’von earns $60,000/year. Using Uncle Al’s advice, what is the minimum amount of salary that D’von should contribute to his 401(k) plan each year? A. $3,600 B. $7,200 C. $9,600 D. $18,000
Faith, a single taxpayer, age 81, forgot to take her 2021 required minimum distribution (RMD) from her traditional IRA. Her account balance on December 31, 2020, was $240,000. What is her excess accumulations penalty? $24,000 $13,408 $6,704 $0
Gadubhi
1
For the following scenarios, compute the maximum total deductible contribution to a traditional IRA for 2023. Traditional IRA Contribution a. Juan, age 41, earns a salary of $58,000 and is not an active participant in any other qualified plan. His wife, Agnes, generates no earned income. 6,000 X
In 2020, Shelly had net earnings from her business of $160,000. What is the amount of Shelly’s self-employed tax? Round answer to nearest dollar.
Aa.63. Ms. Ray is age 46 and single. This year, Mr. Ray's retirement savings included a $2,630 employer contribution to a qualified profit-sharing plan account, and a contribution by Ms. Ray to a traditional IRA. Mr. Ray contributed the maximum allowed. Required: Compute Ms. Ray's IRA deduction if current year income includes $71,320 salary.
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
T4.

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