Required: b-1. What amount will SV contribute to Matthew's money purchase plan? b-2. What can Matthew contribute to his 401(k) account in 2022?
Required: b-1. What amount will SV contribute to Matthew's money purchase plan? b-2. What can Matthew contribute to his 401(k) account in 2022?
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 70IIP: In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine...
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Subject: acounting
![[The following information applies to the questions displayed below.]
Matthew (48 at year-end) develops cutting-edge technology for SV Incorporated, located in Silicon Valley. In 2022,
Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan.
Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for
the employee up to the amount limited by the tax law. Because it provides the money purchase pension plan, SV does not
contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV's
contribution to the money purchase plan.
Note: Leave no answer blank. Enter zero if applicable.
Assuming Matthew's annual salary is $240,000,
Required:
b-1. What amount will SV contribute to Matthew's money purchase plan?
b-2. What can Matthew contribute to his 401(k) account in 2022?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required B1 Required B2
What can Matthew contribute to his 401(k) account in 2022?
Matthew's contribution to 401(k) account
25,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2Fc9264494-97a0-48d2-9bb4-7cece0db77e3%2Fi4jrf3m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Matthew (48 at year-end) develops cutting-edge technology for SV Incorporated, located in Silicon Valley. In 2022,
Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan.
Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for
the employee up to the amount limited by the tax law. Because it provides the money purchase pension plan, SV does not
contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV's
contribution to the money purchase plan.
Note: Leave no answer blank. Enter zero if applicable.
Assuming Matthew's annual salary is $240,000,
Required:
b-1. What amount will SV contribute to Matthew's money purchase plan?
b-2. What can Matthew contribute to his 401(k) account in 2022?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required B1 Required B2
What can Matthew contribute to his 401(k) account in 2022?
Matthew's contribution to 401(k) account
25,000
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