Amber's employer, Lavender, Inc., has a 401(k) plan that permits salary deferral elections by its employees.

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Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 33%.

a. What is the maximum amount Amber can elect for salary deferral treatment for 2014?

b. If Amber elects salary deferral treatment for the amount in (a), how much can she save in taxes?

c. What amount would you recommend that Amber elect for salary deferral treatment for 2014?

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Related Book For  book-img-for-question

South Western Federal Taxation 2015

ISBN: 9781305310810

38th Edition

Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young

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