Kathy Is 60 Years of Age and Self-Employed

question 93

Multiple Choice

Kathy is 60 years of age and self-employed. During the year 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) ?

• A) $28,652
• B) $34,152
• C) $52,000
• D) $57,500

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Definitions:

Individual Problem Solving

A process wherein an individual uses reasoning and analytical abilities to find solutions to problems without external help.

Poor Coordination

Refers to an inefficient alignment or integration of activities, tasks, or efforts among members of a group, team, or organization, leading to suboptimal outcomes.

Creativity

The use of imagination or original ideas to create something; inventiveness.

Team Development

The process through which a group of individuals grows to become more effective in achieving goals, often through stages of forming, storming, norming, and performing.