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 2015?

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 2015?

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South Western Federal Taxation 2016 Comprehensive

ISBN: 9781305395114

39th Edition

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

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Question Posted: Mar 31, 2017 02:40 PM

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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 deferr...View the full answer

South Western Federal Taxation 2016 Comprehensive

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