licia has been working for JMM Corporated for 32 years. Alicia participates in JMM's defined benefit plan. ear of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive c ompensation from JMM. She retired on January 1, 2021. Before retirement, her annual salary was $570,000 or 2018, 2019, and 2020. What is the maximum benefit Alicia can receive in 2021?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 36P
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Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM's defined benefit plan. Under the plan, for every
year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of
compensation from JMM. She retired on January 1, 2021. Before retirement, her annual salary was $570,000, $600,000, and $630,000
for 2018, 2019, and 2020. What is the maximum benefit Alicia can receive in 2021?
Maximum benefit in 2021
Transcribed Image Text:Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM's defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2021. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2018, 2019, and 2020. What is the maximum benefit Alicia can receive in 2021? Maximum benefit in 2021
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