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Kathy Is 48 Years of Age and Self-Employed

question 70

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Kathy is 48 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 an individual 401(k) ?

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Definitions:

Internal Monologue

A person's inner voice that narrates thoughts and feelings, often reflecting conscientious or reflective thinking.

Self-Talk

The inner dialogue that a person has with themselves, which can influence their attitudes and behaviors.

Conscious Level

The degree of awareness an individual has about their thoughts, feelings, and surroundings.

Posttraumatic Growth

Posttraumatic growth is the positive psychological change experienced as a result of the struggle with highly challenging life circumstances, leading to a significant transformation in personal development.

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