Amity is an employee with a period gross pay of $2,000. She elects to have 3% of her gross pay withheld for her 401(k) contribution. What will be her taxable income be for federal income taxes?

Name: Amity is an employee with a period gross pay of $2,000. She elects to have 3% of her gross pay withheld for her 401(k) contribution. What will be her taxable income be for federal income taxes?
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Question

Quizplus · Accepted Answer

Amity's 401(k) contribution is $2,000 x 3% = $60. Her taxable income will be $2,000 - $60 = $1,940.

Amity Is an Employee with a Period Gross Pay of $2,000