Calculate the maximum contribution to a SEP plan

Assignment Help Accounting Basics
Reference no: EM132674899

Problem -

1. Lewis, a self-employed individual, has net earned income of $50,000 in 2019. If Lewis has no employees, calculate the maximum contribution to a SEP plan that he may deduct from his adjusted gross income.

2. During 2019, Linda, age 32, has a salary of $40,000. She participates in a Section 401(k) plan and chooses to defer 25 percent of her compensation.

i. What is the maximum amount Linda can contribute to the Section 401(k) plan on a tax-deferred basis?

ii. If Linda's salary was $125,000, instead of $40,000, what is the maximum amount that she could contribute to the Section 401(k) plan on a tax-deferred basis?

Reference no: EM132674899

Questions Cloud

The future of juvenile corrections : Which option do you think will play a more important role-community-based options like probation and community correction or secure detention?
Calculate their medical expense deduction : In addition, during 2019, they drove 700 miles for medical transportation in their personal automobile. Calculate their medical expense deduction
49254 Advanced Soil Mechanics and Foundation Design : 49254 Advanced Soil Mechanics and Foundation Design Assignment Help and Solution, University of Technology Sydney - Assessment Writing Service
What are jamie total finance charges : Jamie purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years. What are Jamie's total finance charges?
Calculate the maximum contribution to a SEP plan : If Lewis has no employees, calculate the maximum contribution to a SEP plan that he may deduct from his adjusted gross income
Divide conservatives and liberals is size of government : One of the most contentious issues that divide conservatives and liberals is the size of government.
Public interest through leadership and personnel management : Several topics pertaining to implementing the public interest through leadership and personnel management were examined in this week's lesson
Determine the final value of andrew investment : The rate of interest Andrew gets is 8% annually Determine the final value of Andrew's investment at the end of the twentieth year on this ordinary annuity.
Reinventing government : Al Gore launched a "reinventing government" initiative during the Clinton Administration that sought to streamline government procedures and processes,

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd