Kathy Is 48 Years of Age and Self-Employed

question 4

Multiple Choice

Kathy is 48 years of age and self-employed. During 2018 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 a simplified employee pension (SEP) IRA for 2018? (Round your final answer to the nearest whole number)

• A) $11,152.
• B) $17,152.
• C) $61,000.
• D) $55,000.

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