During 2018, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 12 percent. Jill’s salary was $90,000 for the year. Jill elects to make the maximum contribution. What is Jill’s maximum tax-deferred contribution to the plan for the year?

Q: Joanna, age 44, defers $24,000 in a qualified Solo § 401(k) plan in 2020. a. What amount must be…

A: Concept used : The deferral limit for 2020 is $19,500.

Q: Agnes, a resident taxpayer, has a taxable income of $50,000 for the income tax year ended 30 June…

A: PAYG is pay as you go is amount  of tax deducted by employer  at source. After filing income  tax…

Q: Meghan, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method.…

A: When a taxpayer uses cash method, he is supposed to record the expense in the year of payment.…

Q: What is the maximum amount Amber can elect for salary deferral treatment for 2020?   If Amber elects…

A: Section 401(k) plan:   In § 401(k) plan, employees are allowed to cover compensation up to $19,000…

Q: Thomas, who is 49 years old, received a distribution from his Roth account of his employer’s 401(k)…

A: The correct answer is (b) $40,000 taxable , $4000 tax penalty  Distribution of Roth account is…

Q: Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for…

A: AGI (Adjusted gross income) refers to the gross income remained after deducting the annual gross…

Q: The taxpayer is married filled joints (age 40), with an AGI of $199,000, and is not an active…

A: Individual retirement account is an account created with a financial institution to save for future…

Q: Last year Juni earned $49,800 from her job, and $42 in interest income. Her employer withheld $4800…

A: Tax-deferred retirement account: It is an  employer-sponsored retirement savings plan , and employer…

Q: eorgina has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2020,…

A: Explanation: FUTA Tax rate = 6% less-Credit of SUTA Tax Rate FUTA Tax rate = 6%-5.4% FUTA Tax rate =…

Q: Sal, single and age 72, is a participant of his employer’s qualified profit-sharing plan. For the…

A: IRA is an Individual retirement account. Individual can make contribution to this account, to have…

Q: Regina has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2020, respectively.…

A: Net FUTA Tax rate = FUTA Tax rate - SUTA Tax Rate = 6% - 5.4% = 0.6%

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…

Q: Linda, who files as a single taxpayer, had AGI of $280,000 for 2019. She incurred the following…

A: Itemized Deductions - It includes amounts paid by you to state and local income/sales taxes,…

Q: Norma, who is single and uses the cash method of accounting, lives in a state that imposes an income…

A: Particulars                                                    $ Withheld in 2019…

Q: In 2020, Juergen made after-tax contributions of $24,300 to his employer's qualified plan. In August…

A: Certain commodities and financial securities that are exempt from taxes are referred to as tax-free.…

Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021.…

A: Answer:-  FICA Tax definition: - FICA stands for the Federal Insurance Contribution Act. It is…

Q: Corporation, a cash basis taxpayer, received $10,000 from a customer in 2019. In that year, the…

A: Whenever the taxes you had already paid exceed your entire tax burden, the government reimburses you…

Q: Brooke, a single taxpayer, works for Company A for all of 2021, earning a salary of $64,000. a.…

A: The question is related to Federal Insurance Contribution Act shared equally by employer amd…

Q: Taylor, age 16, is claimed as a dependent by her parents. For 2020, she has the following income:…

A: Kiddie tax is applicable on a dependent child if all the following requirements are met for the…

Q: During 2019, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee…

A: Salary for the year : $49,600 Maximum contribution : 10% Maximum tax deferred contribution : (…

Q: Christie sued her former employer for a back injury she suffered on the job in 2020. As a result of…

A: Ans : Option - B - $ 172000.00 Explanation - Christie must include in gross income the $160,000 of…

Q: In 2020, Juergen made after-tax contributions of $24,300 to his employer's qualified plan. In August…

A: Tax free distribution= (Basic/Account balance) X Distribution amount

Q: Kathy is 48 years of age and self-employed. During 2019, she reported $100,000 of revenues and…

A: Solution: Maximum amount she can contribute to an individual 401(k) for 2019 = Employee contribution…

Q: Ava and her husband, Leo, file a joint return and are in the 24% Federal income tax bracket in 2020.…

A: In case of b part, if Ava avails the plan then income tax savings will be 10% of reimbursement…

Q: During 2020, Ms. Sunshine has net employment income of $95,000 after claiming her RPP deduction of…

A: A registered pension plan (RPP) is a pension plan that your firm has formed and registered with the…

Q: Patricia, an unmarried taxpayer who is head of household, has adjusted gross income of \$42 ,800 and…

A: Answer: If Patricia elects to participate in the employer provided program and has her expenses…

Q: In 2020, Mason, age 35 and single, earned wages of $75,000. Mason had no exclusions, and he had…

A: As per United State tax laws Itemized deduction are those deduction which can be claimed as…

Q: In 2020, Bianca earned a salary of $189,000 from her employer. Determine the amount of FICA Social…

A: Answer The Social Security  withholding rate is gross pay times 6.2% up to the maximum pay level for…

Q: For 2018, Randy, an unmarried taxpayer, has wages of $45,000. He has a significant amount of income…

A: Taxable income is the income which would be considered for the purposes of income tax. This taxable…

Q: Don Driller, who is 56 years old, is provided with $120,000 of group-term life insurance by his…

A: According to the IRS publication: "IRC section 79 provides an exclusion for the first $50,000 of…

Q: On August 10, 2018, Don turned 65 and received his first pension payment. Over the year, he had…

A: Pension plan Pension plan is an agreement between the employer and employee. After the retirement of…

Q: Ava and her husband, Leo, file a joint return and are in the 24% tax bracket in 2019. Ava’s employer…

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: Bugzap, a calendar year accrual basis taxpayer, is engaged in the pest control business, providing…

A: The revenue recognition principle defines the timing and amount of revenue that an organization…

Q: What is the maximum amount that Terry and Jennifer may each deduct for contributions to their…

A: Pension plan: Pension plan can be defined as the plan where both employer and employee contribute…

Q: Jill 39 participated in a Section 401(k) plan which provides for maximum employee contributions of…

A: 401(K) Plan: It is a retirement savings plan. This is a defined contribution retirement account…

Q: Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In…

A: Given information is: Contribution to HSA = $100 per month One time contribution = $2000 Used for…

Q: Tyler, a single taxpayer, generates business income of $3,000 in 2016. In 2017, he generates an NOL…

A: As per IRS, the net operating losses are the excess of tax-deductible expenses over taxable revenues…

Q: Alicia has been working for JMM Corp. for 33 years. Alicia participates in JMM’s defined benefit…

A: Annual salary is the total salary an employee paid for a complete year.

Q: Robert Bowser, an employee, was covered under a noncontributory pension plan. Robert died on April…

A: Robert Died on April 15, 2020 His widow received pension payments of $500 from 01-05-2020 Death…

Q: Amber's employer, Lavender, Inc., has a 5 401(k) plan that permits salary deferral elections by its…

A: An elective-deferral contribution is a portion of an employee's salary that's withheld and…

Q: Derek, a cash basis, unmarried taxpayer, had $610 of state income tax withheld during 2018. Also in…

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: 00 Capital loss from sale of stock held 6 months…………………..(4,000) Compute Sarah’s regular taxable…

A: Income tax Payable: It refers to the amount which is required to be paid by an entity on the taxable…

Q: nise is a full-time exempt employee living in St. George Utah who is $28,500 annually and is paid…

A: Federal Income Tax: When a person earn income from the various income sources, say salary, interest…

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

A: 401(k) plan: It is a retirement savings account that permits the employees to make contributions…

Q: In 2018, Nelia Gomez, an MWE, received from her employer an annual minimum wage salary of ₱99,702.…

A: Tax is charged on the income of an individual, firm, company, or organization at a predetermined…

Q: During the year ended 30 June 2019 Rechelle, a resident taxpayer, received salary and wages income…

A: During year ended 30.06.2019, Rechelle, a resident tax payer salary and wages income = $34750…

Q: Melba, age 58, takes a $12,000 distrubtion from her traditional IRA. She uses the distribution to…

A: Given, Melba, age 58, takes a $12,000 distribution from her traditional IRA, She uses the…

Q: Meghan, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method.…

A: Solution- You Record the Entire Expense in the year  of Payment, under cash basis  of accounting.…

Q: How much of Darlene's distribution is subject to the 10% additional tax?

A: A traditional IRA refers to the retirement account of an individual where he could make…

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.