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:

Concept

An abstract idea or a mental symbol used to understand or categorize the world.

Functional Autonomy

A principle in psychology proposed by Gordon Allport, suggesting that motives in the mature adult become independent of their origins.

Propriate Autonomy

A concept in psychology that refers to the development of an independent self, capable of making its own decisions and regulating its own behavior.

Example

A specific case used to illustrate or explain a rule, principle, or phenomenon.