Question

During 2019, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 11%. Jill's salary was $70,000 for the year. Jill elects to make the maximum contribution.

Required:
What is Jill's maximum tax-deferred contribution to the plan for the year?

Answer 1

Jill's maximum tax deferred contribution to the plan for the year is $7,700

Step-by-step explanation:

Jill's maximum tax deferred contribution to the plan for the year

Salary $70,000

Maximum contribution 11%

Maximum tax deferred contribution $7,700