Tessa Is a Self-Employed CPA Whose 2019 Net Earnings from Her

question 48

Multiple Choice

Tessa is a self-employed CPA whose 2019 net earnings from her business (before the H.R.10 plan contribution but after the deduction for one-half of self-employment taxes) is $400,000.What is the maximum contribution that Tessa can make on her behalf to her H.R.10 (Keogh) plan in 2019?

• A)$100,000
• B)$80,000
• C)$70,000
• D)$56,000

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Definitions:

Cost of Retirement

The expenses associated with an individual's retirement, including savings and investments needed to maintain one's standard of living.

Bonds Plus Interest

The total value of bonds when including the accrued interest up to a specific date.

Retired Bonds

Bonds that have been paid off or redeemed by the issuer before their maturity date.

Bond Sinking Fund

A separate fund established by an issuer of bonds to repay principal on the debt over time, ensuring the bond's eventual maturity is financially manageable.