Chorisia Corporation has a Section 401(k) plan for its employees. The plan provides for maximum contributions equal to 15 percent of the employee's salary. Donna, a 55-year-old employee of Chorisia Corporation, elects to contribute the maximum amount possible to the Section 401(k) plan. During 2016, Donna has $115,000 in wages. For 2016, what is the maximum amount that Donna may contribute to the plan on a tax-deferred basis?

Question

Quizplus · Accepted Answer

The Answer of Chorisia Corporation has a Section 401(k) plan for its employees. The plan provides for maximum contributions equal to 15 percent of the employee's salary. Donna, a 55-year-old employee of Chorisia Corporation, elects to contribute the maximum amount possible to the Section 401(k) plan. During 2016, Donna has $115,000 in wages. For 2016, what is the maximum amount that Donna may contribute to the plan on a tax-deferred basis?

Chorisia Corporation Has a Section 401(k) Plan for Its Employees