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48. Ryan (age 50) is employed by Best Mutual Funds (BMF) and participates in its profit-sharing Section 401(k) plan for 2019. The plan allocates contributions
48. Ryan (age 50) is employed by Best Mutual Funds (BMF) and participates in its profit-sharing Section 401(k) plan for 2019. The plan allocates contributions based on relative compensation and is not integrated with Social Security. Ryan's current annual compensation is $80,000, and he has elected to defer 5% of compensation into the Section 401(k) plan. Including Ryan, 35 employees with a total covered payroll of $1.8 million participate in the plan and have elected to defer a total of $72,000 (4% of payroll). What is the maximum annual deductible contribution to the profit-sharing plan BMF can make? A. $225,000 B. $450,000 C. $378,000
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