Norman Stonewell reports a salary of 60,000 on a joint return in 2019. Reports 300,000 in net royalty income (ie net of business deductions and self-employment tax), from two books he wrote. Norman is 48, and his wife Betty is 50. a.Is Norman eligible to participate in a corp 401k plan, a solo 401k plan and a roth IRS in the same year? b. What are the max contribution and deduction amounts available to Norman if he maintains a solo 401k plan? c.When must the solo 401k plan be opened and the contribution made? d. If betty is a nonworking spouse, what is the max traditional IRS contribution allowable for both spouses? e.When must the traditional IRA accounts be opened and the contribution made?
Norman Stonewell reports a salary of 60,000 on a joint return in 2019. Reports 300,000 in net royalty income (ie net of business deductions and self-employment tax), from two books he wrote. Norman is 48, and his wife Betty is 50. a.Is Norman eligible to participate in a corp 401k plan, a solo 401k plan and a roth IRS in the same year? b. What are the max contribution and deduction amounts available to Norman if he maintains a solo 401k plan? c.When must the solo 401k plan be opened and the contribution made? d. If betty is a nonworking spouse, what is the max traditional IRS contribution allowable for both spouses? e.When must the traditional IRA accounts be opened and the contribution made?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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45. Norman Stonewell reports a salary of 60,000 on a joint return in 2019. Reports 300,000 in net royalty income (ie net of business deductions and self-employment tax), from two books he wrote. Norman is 48, and his wife Betty is 50.
a.Is Norman eligible to participate in a corp 401k plan, a solo 401k plan and a roth IRS in the same year?
b. What are the max contribution and deduction amounts available to Norman if he maintains a solo 401k plan?
c.When must the solo 401k plan be opened and the contribution made?
d. If betty is a nonworking spouse, what is the max traditional IRS contribution allowable for both spouses?
e.When must the traditional IRA accounts be opened and the contribution made?
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