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what is the maximum amount she can contribute to an individual 401(k) for 2022?

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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Question

Kathy is 60 years of age and self-employed. During 2022, she reported $536,000 of revenues and $107,200 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k) for 2022? Assume she pays $29,121 in self-employment for 2022.

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