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Jim Is Self-Employed and Had a "Banner" Year in 2018

Question 82

Multiple Choice

Jim is self-employed and had a "banner" year in 2018, earning $350,000 net income. He wanted to make a significant contribution to his retirement planning and set up a SEP plan. Since the plan allows for contributions up to 25% of net income, his maximum contribution was


A) $55,000.
B) $87,500.
C) $75,000.
D) $63,000.

Correct Answer:

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