Kathy Is 48 Years of Age and Self-Employed

question 85

Multiple Choice

Kathy is 48 years of age and self-employed. During the year she reported $500,000 of revenues and $100,000 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) ?

• A) $77,351.
• B) $83,351.
• C) $60,000.
• D) $54,000.

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Definitions:

Periosteum

A thick layer of blood vessel-rich connective tissue that surrounds the bones, except where the joints are located.

Lacunae

Small cavities in bone or cartilage tissue that house cells (osteocytes, chondrocytes), providing them with space to reside and function.

Osteon

The spindle-shaped unit of bone composed of concentric layers of osteocytes organized around a central Haversian canal containing blood vessels and nerves.

Vertebrae

The series of small bones forming the backbone, in humans being 33 in number and providing support and flexibility.