During 2010, Linda, age 32, has a salary of $40,000. She participates in a Section 401(k) plan

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During 2010, Linda, age 32, has a salary of $40,000. She participates in a Section 401(k) plan and chooses to defer 20 percent of her compensation.

a. What is the maximum amount Linda can contribute to the Section 401(k)

plan on a tax-deferred basis?

b. If Linda’s salary were $125,000, instead of $40,000, what is the maximum amount that she could contribute to the Section 401(k) plan on a taxdeferred basis?

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Income Tax Fundamentals 2011

ISBN: 9780538469197

29th Edition

Authors: Gerald E. Whittenburg, Martha Altus-Buller

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Question Posted: Oct 10, 2024 01:00 AM

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During 2010, Linda, age 32, has a salary of $40,000. She participates in a Section 401(k) plan

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Income Tax Fundamentals 2011

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