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

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Definitions:

Service Workers

Individuals employed in the service sector, providing intangible goods and services to consumers, such as healthcare, hospitality, and retail services.

Violence

The use of physical force or power, threatened or actual, against oneself, another person, or against a group or community, that either results in or has a high likelihood of resulting in injury, death, psychological harm, maldevelopment, or deprivation.

Firefighters

Trained professionals dedicated to extinguishing fires, rescuing individuals, and preventing the spread of fires, often involved in medical aid and disaster response.

Bankers

Professionals involved in the banking industry, dealing with the management of financial institutions, transactions, and the provision of financial services.