Fred Is a Self-Employed Accountant with Gross Earned Income of $140,000

question 94

Multiple Choice

Fred is a self-employed accountant with gross earned income of $140,000 per year (after the deduction for one-half of any self-employment tax) . He has a profit sharing plan (i.e., defined contribution plan) . What is the maximum amount Fred can contribute to his retirement plan?

• A)$28,000
• B)$35,000
• C)$40,000
• D)$140,000
• E)None of the above

---

Definitions:

Egalitarianism

The doctrine that advocates for equal rights and opportunities for all people in a society.

Legislative Branch

One of the branches of government responsible for making and enacting laws.

Trade Control

Regulations and policies implemented by a government to manage and control international trade and exports.

Extremism

The holding of extreme political or religious views that may lead to actions outside of societal norms.