Required information. [The following information applies to the questions displayed below.] Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2021, Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan. U the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for t employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV dow contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account afte contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.) suming Matthew's annual salary is $71,000, 1. What amount will SV contribute to Matthew's money purchase plan? 2. What amount can Matthew contribute to his 401(k) account in 2021? Complete this question by entering your answers in the tabs below.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 38P
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Required information
[The following information applies to the questions displayed below.]
Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2021, Matthew
participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan. Under
the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for the
employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not
contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV's
contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.)
Assuming Matthew's annual salary is $71,000,
c-1. What amount will SV contribute to Matthew's money purchase plan?
c-2. What amount can Matthew contribute to his 401(k) account in 2021?
Complete this question by entering your answers in the tabs below.
Req c2
What amount will SV contribute to Matthew's money purchase plan?
SV's contribution to money purchase plan
Req c1
Req c2 >
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2021, Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV's contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.) Assuming Matthew's annual salary is $71,000, c-1. What amount will SV contribute to Matthew's money purchase plan? c-2. What amount can Matthew contribute to his 401(k) account in 2021? Complete this question by entering your answers in the tabs below. Req c2 What amount will SV contribute to Matthew's money purchase plan? SV's contribution to money purchase plan Req c1 Req c2 >
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