Required information [The following information applies to the questions displayed below.] Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $278,000. 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?
Required information [The following information applies to the questions displayed below.] Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $278,000. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net
Schedule C income was $278,000. 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.
b. She sets up an individual 401(k).
Maximum contribution
$ 55,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b5714fb-4e7f-4168-a3fc-af8af3f4330d%2F01567699-7de8-4f9e-ae70-8bedfef2950a%2Faim1jrb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net
Schedule C income was $278,000. 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.
b. She sets up an individual 401(k).
Maximum contribution
$ 55,600
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