Kathy Is 48 Years of Age and Self-Employed

question 35

Multiple Choice

Kathy is 48 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)$19,500.
• B)$30,652.
• C)$37,152.
• D)$57,000.

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Definitions:

Psychoanalytic Psychologist

A professional in psychology who applies theories and techniques from psychoanalysis to understand and treat psychological issues, focusing on unconscious motives and childhood experiences.

Existential

Pertaining to existentialism, a philosophy that emphasizes individual freedom, choice, and responsibility.

Gestalt

A psychological theory that proposes objects are viewed in their entirety before it is possible to perceive their parts, emphasizing holistic processing.

Behavioral

Relating to the actions or reactions of a person or animal in response to external or internal stimuli.