Question

4. Amy is single. During 2019, she determined her adjusted gross income was $12,000. During the year, Amy also contributed $1,500 to a Roth IRA. What is the maximum saver's credit she may claim for the year?

Multiple Choice

• $750.

• $1,000.

• $1,500.

• $0.

6, Kathy is 48 years of age and self-employed. During 2019, she reported $100,000 of revenues and $40,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k) for 2019? Assume she paid $8,478 of self-employment tax for 2019. (Round your final answer to the nearest whole number.)

Multiple Choice

• $11,152.

• $30,152.

• $36,152.

• $56,000.

13,

Kathy is 60 years of age and self-employed. During 2019, she reported $100,000 of revenues and $40,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k) for 2019? Assume she paid $8,478 of self-employment tax for 2019. (Round your final answer to the nearest whole number.)

Multiple Choice

• $30,152.

• $36,152.

• $56,000.

Answer 1

4. $750

(As her income is less than $19,250, she is eligible for 50% saver's credit. So, 1500 * 50% = 750)

5. $30,152

  (It includes employee contribution of $19,000 and employer contribution of $11,152)

Calculation of employer contribution = 20% * ( net earnings - half the amount of tax paid)

= 20% * ( 60,000 - 8,478/2) = $11,152

No catch up contribution would be provided beacuse Kathy is less than 50)

6. $36,152

( $30,152 calculated in 5th part + $6,000 (catch up contribution because of age more than 50)