Joey has been an active participant in a defined benefit plan for 21 years. During his last 5 years of employment, Joey earned $32,000, $48,000, $55,000, $95,000, and $105,000, respectively (representing his highest-income years).
a.Calculate Joey's maximum allowable benefits from this qualified plan (assume there are fewer than 100 participants).
b.Assume that Joey's average compensation for his three high years is $203,000. Calculate Joey's maximum allowable benefits.

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The Answer of Joey has been an active participant in a defined benefit plan for 21 years. During his last 5 years of employment, Joey earned $32,000, $48,000, $55,000, $95,000, and $105,000, respectively (representing his highest-income years).
a.Calculate Joey's maximum allowable benefits from this qualified plan (assume there are fewer than 100 participants).
b.Assume that Joey's average compensation for his three high years is $203,000. Calculate Joey's maximum allowable benefits.

Joey Has Been an Active Participant in a Defined Benefit