Ask Question
15 July, 20:51

During 2018, Jill, age 39, participated in a Section 401 (k) plan which provides for maximum employee contributions of 12%. 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

+5
Answers (1)
  1. 15 July, 23:41
    0
    The correct answer is $10,800.

    Explanation:

    According to the scenario, the given data are as follows:

    Jill's salary = $90,000

    Jill's maximum contribution = 12%

    So, we can calculate Jill's maximum tax-deferred contribution by using following formula:

    Maximum tax-deferred contribution = Jill's salary * Maximum contribution percentage.

    = $90,000 * 12%

    = $90,000 * 0.12

    = $10,800

    Hence, Jill's maximum tax-deferred contribution to the plan for the year is $10,800.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “During 2018, Jill, age 39, participated in a Section 401 (k) plan which provides for maximum employee contributions of 12%. Jill's salary ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers