34. LO.4, 10 Ambers employer, Lavender, Inc., has a 401(k) plan that permits salary deferral elections

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34. LO.4, 10 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 2013?

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 2013?

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South-Western Federal Taxation 2014 Corporations Partnerships Estates And Trusts

ISBN: 9781285424484

37th Edition

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

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Question Posted: Sep 06, 2024 11:01 AM

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34. LO.4, 10 Ambers employer, Lavender, Inc., has a 401(k) plan that permits salary deferral elections

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South-Western Federal Taxation 2014 Corporations Partnerships Estates And Trusts

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