Question
. Nick, who is age 55, operates a landscaping business and is self-employed. He has an assistant, Louis (age 30), who has worked with him
. Nick, who is age 55, operates a landscaping business and is self-employed. He has an assistant, Louis (age 30), who has worked with him for five years, earning about $10,000 per year. Nick is establishing a SEP IRA for 2018 and is willing to make a contribution of 15% of Louiss salary to the SEP IRA. If Nick earns $100,000 after paying Louis, his expenses, and the contribution to Louiss SEP IRA (i.e., Net Schedule C Income), what is the most that Nick can contribute to the SEP IRA for himself?
a) $12,119.
b) $15,000.
c) $18,587.
d) $20,000.
e) $24,500
f) $25,000.
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