Question
Asked Oct 11, 2019
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During 2018, Jerry is a self-employed therapist, and his net earned income is $160,000 from his practice. Jerry's SEP Plan, a defined contribution plan, states that he will contribute the maximum amount allowable.

Calculate Jerry's contribution.

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Expert Answer

Step 1

SEP IRA- A Simplified Employee Pension is a retirement plan that provides benefit to employees after their retirement. It is followed by business owners for the employees or by a self-employed person.

Step 2

Contribution to a self employed person in SEP IRA is made in the year 2018 and should not be more than the ...

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Accounting

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