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

Question:

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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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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Question Posted: Dec 22, 2016 01:13 AM

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

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a The maximum amount for which Amber can elect 401k plan salary deferra...View the full answer

South Western Federal Taxation 2015

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