Kathy Is 60 Years of Age and Self-Employed

question 97

Multiple Choice

Kathy is 60 years of age and self-employed. During 2020 she reported $118,000 of revenues and $43,600 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 a SEP IRA for 2020? (Round your final answer to the nearest whole number.)

• A)$13,829.
• B)$17,170.
• C)$71,800.
• D)$55,800.

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Definitions:

Certainty

The total absence of doubt about something.

Participation Error

Mistakes or difficulties that arise in the context of individuals engaging with or contributing to a group activity or decision-making process.

Programmed Decisions

Decisions that are routine and repetitive, often automated or made following established guidelines or procedures.

Moral Problem

Poses major ethical consequences for the decision maker or others.