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 $274,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What in t a situatione?
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 $274,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What in t a situatione?
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 41P
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Problem 13-85 (LO 13-5) (Algo)
[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 (2023). In 2023, her net Schedule C income
was $274,000. 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 a (Algo)
a. She sets up a SEP IRA.
Maximum contribution](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7b70c90-35f0-43b0-b8bd-a5e3647118bd%2F58e96cb4-34f9-4082-9fd2-1101d22eb645%2Fy96d9q_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 13-85 (LO 13-5) (Algo)
[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 (2023). In 2023, her net Schedule C income
was $274,000. 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 a (Algo)
a. She sets up a SEP IRA.
Maximum contribution
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