Kathy is 48 years of age and self-employed. During 2020 she reported $534,000 of revenues and $106,800 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k)?
A)$57,000.
B)$63,500.
C)$83,088.
D)$19,500.

Question

Quizplus · Accepted Answer

The maximum contribution to an individual 401(k) for 2020 is $57,000, which includes both employee and employer contributions. Kathy can contribute up to this limit based on her self-employment income.

Kathy Is 48 Years of Age and Self-Employed