Amber’s employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber’s salary is $99,000, her marginal tax rate is 24%, and she is 42 years old. What is the maximum amount Amber can elect for salary deferral treatment for 2020?   If Amber elects salary deferral treatment for the amount in part (a), how much can she save in taxes?   What amount would you recommend that Amber elect for salary deferral treatment for 2020?

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Q:

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Q: Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its…

A: Answer a: The maximum amount that Amber can elect as per section 401(k) plan salary deferral for…

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A: Non-Qualified Deferred Compensation Plans: Non-qualified deferred compensation plans allow employees…

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A:

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Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.