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, an employee of Serissa Corporation, elects to contribute the maximum amount possible to the Section 401(k) plan. During 2014, Scott has $40,000 in wages. For 2014, 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, an employee of Serissa Corporation, elects to contribute the maximum amount possible to the Section 401(k) plan. During 2014, Scott has $40,000 in wages. For 2014, 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