What is the maximum amount he may contribute to the self-employed plan in each of the following situations?

PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter4: Income Tax Withholding
Section: Chapter Questions
Problem 7QR
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[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 (2023). In 2023, his net Schedule C income was $270,000. 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.
a. He sets up a SEP IRA.
Maximum contribution
Transcribed Image Text:[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 (2023). In 2023, his net Schedule C income was $270,000. 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. a. He sets up a SEP IRA. Maximum contribution
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