Kathy Is 60 Years of Age and Self-Employed

question 89

Multiple Choice

Kathy is 60 years of age and self-employed. During 2020, she reported $100,000 of revenues and $40,000 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) for 2020? Assume she paid $8,478 of self-employment tax for 2020. (Round your final answer to the nearest whole number.)

• A)$30,652.
• B)$37,152.
• C)$57,000.
• D)$63,500.

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Definitions:

Novel Ideas

Original, innovative concepts that have not been thought of before.

Innovation

The introduction of something new, such as an idea, method, or device.

Job Design

The process of organizing tasks, duties, and responsibilities into a productive work unit to accomplish organizational goals.

Organizational Climate

The general atmosphere, culture, and morale felt by employees and the prevailing attitudes towards work and the company.