Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 45

Generous Corporation provides a SIMPLE plan for its employees. Under the plan, employees can contribute up to 6% of their salary and Generous Corporation will match each employee's contribution up to 3% of the employee's salary. Bob is an employee of Generous Corporation and elects to contribute 6% of his $60,000 salary to the SIMPLE plan. What is the total contribution made to his SIMPLE account? a. $11,500.
B) $5,400.
C) $3,600.
D) $1,800.