Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2023). In 2023, her net Schedule C income was $280,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations?
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2023). In 2023, her net Schedule C income was $280,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations?
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 38P
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Question
![Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2023). In 2023, her net Schedule C income
was $280,000. This was her only source of income. This year, Rita is considering setting up a retirement plan.
What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations?
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
Problem 13-85 Part b (Algo)
b. She sets up an individual 401(k).
Maximum contribution](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52476ee9-c360-4937-8f5a-8576cacac103%2Fd27310d8-3ae8-4120-beca-3f37b303905d%2Frdkpc76_processed.png&w=3840&q=75)
Transcribed Image Text:Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2023). In 2023, her net Schedule C income
was $280,000. This was her only source of income. This year, Rita is considering setting up a retirement plan.
What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations?
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
Problem 13-85 Part b (Algo)
b. She sets up an individual 401(k).
Maximum contribution
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