1.

Determine how much self-employment taxes Maggie will owe in 2022. Maggie is a hairstylist and was advised by non CFP to structured her practice as a sole proprietorship. She earned 175,000 in self-employment income.

2.

James Hoffman owns and operates Hoffman Leather Products (a sole proprietorship), doing business as HLP. HLP had a net income of 200,00 and paid 19,047.62 in self-employment taxes in 2022. HLP was advised to sponsor a 401(k)/profit-sharing plan. Mr. Hoffman is 60 and would like to know the maximum amount that HLP can contribute to the plan in 2022 on his behalf.