Serissa Corporation has a Section 401(k) plan for its employees. The plan provides for a maximum contribution equal to 15 percent of the employees' salaries. Scott, a 40-year-old employee of Serissa Corporation, elects to contribute the maximum amount possible to the Section 401(k) plan. During 2016, Scott has $42,000 in wages. For 2016, what is the maximum amount that Scott may contribute to the plan on a tax-deferred basis?

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The Answer of Serissa Corporation has a Section 401(k) plan for its employees. The plan provides for a maximum contribution equal to 15 percent of the employees' salaries. Scott, a 40-year-old employee of Serissa Corporation, elects to contribute the maximum amount possible to the Section 401(k) plan. During 2016, Scott has $42,000 in wages. For 2016, what is the maximum amount that Scott may contribute to the plan on a tax-deferred basis?

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