Kathy Is 60 Years of Age and Self-Employed

question 148

Multiple Choice

Kathy is 60 years of age and self-employed. During 2020 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 a SEP IRA for 2020?Assume she pays $27,787 in self-employment for 2020. (Round your final answer to the nearest whole number.)

• A)$57,000.
• B)$63,500.
• C)$77,221.
• D)$372,213.

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Definitions:

Foster Care

A temporary arrangement in which a child is placed with a family or institution for care when their own family cannot provide for them.

Foster Care

A temporary arrangement where children who cannot live with their own families are placed in the care of another family or institutional setting.

Indentured Servants

Individuals who entered into a contract of labor for a set period of time, in exchange for passage to a new country, accommodation, or other benefits during the 17th and 18th centuries.

Reunification

The process of bringing together family members who have been separated, often due to factors like divorce, displacement, or foster care.