Fred Is a Self-Employed Accountant with Gross Earned Income of $140,000

question 59

Multiple Choice

Fred is a self-employed accountant with gross earned income of $140,000 per year (after the deduction for one-half of any self-employment tax) .He has a profit sharing plan (i.e., defined contribution plan) .What is the maximum amount Fred can contribute to his retirement plan?

• A)$28,000
• B)$35,000
• C)$40,000
• D)$140,000
• E)None of these