Desmond is 25 years old, and he participates in his employers 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmonds savers credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.) a. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $34,000.

10%

b. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $17,500.

c. Desmond files as a head of household and has an AGI of $44,000.

d. Desmond and his wife file jointly and report an AGI of $30,000 for the year.

EXHIBIT 13-8 2020 Applicable Percentages for Savers Credit by Filing Status and AGI

Applicable Percentage	Joint Filers AGI	Head of Household AGI	All Other Filers AGI
50%	0 to $39,000	0 to $29,250	0 to $19,500
20	$39,001 to $42,500	$29,251 to $31,875	$19,501 to $21,250
10	$42,501 to $65,000	$31,876 to $48,750	$21,251 to $32,500
No credit available	Above $65,000	Above $48,750	Above $32,500

IF POSSIBLE AFTER ANSWERING ABOVE QUESTION JUST SEE IF BELOW QUESTION IS RIGHT - ALL WORK SHOWN BELOW

Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2020). In 2020, her net Schedule C income was $320,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

a. She sets up a SEP IRA.

Maximum contribution limit as per SEP IRA for self employed

=25% of net earnings limited up to $57,000

= 25% *320,000 = $80,000 but limited upto $57,000

maximum contribution will be $57,000 ------ANS

b. She sets up an individual 401(k). 57,000