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:

Milieu Therapy

A therapeutic approach that utilizes the environment and community within a psychiatric hospital or residential facility to promote healing and change.

Antipsychotic Drugs

Medications used to manage psychosis, including disorders like schizophrenia, by affecting neurotransmitter levels in the brain.

Antihistamines

Medications used to relieve or prevent the symptoms of allergies by blocking the action of histamine.

Analgesics

Medicinal drugs used to relieve pain without causing anesthesia; also known as painkillers.