Tessa Is a Self- Employed CPA Whose 2018 Net Earnings

question 2024

Multiple Choice

Tessa is a self- employed CPA whose 2018 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 2018?

• A) $80,000
• B) $55,000
• C) $68,750
• D) $100,000

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Definitions:

Team Members

Individuals who are part of a group collaborating towards a common goal, each contributing with their unique skills and roles.

Coordination

The act of organizing or arranging elements in a system or activities among a group of agents to achieve desired outcomes.

Agreement

A mutual understanding or arrangement, often formalized by a contract, between parties regarding their rights and responsibilities.

Standard Of Behavior

The expected and acceptable way of acting or behaving in a given group, community, or society.