Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $298,000. This was her only source of income. This year, Rita is considering setting up a retirement
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $298,000. This was her only source of income. This year, Rita is considering setting up a retirement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $298,000. This was her only source of income. This year, Rita is considering setting up a retirement plan.
What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations?
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
a. She sets up a SEP IRA.
b. She sets up an individual 401(k).
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