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Problem 9-36 (LO. 6) Amber's employer, Lavender, Inc., has a 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and
Problem 9-36 (LO. 6) Amber's employer, Lavender, Inc., has a 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2019? $ 1,800 x Feedback b. If Amber elects salary deferral treatment for the above amount, how much can she save in taxes? Her tax liability for 2019 would be reduced by $ 4,500 X. Feedback c. What is the recommended amount that Amber should elect as salary deferral treatment for 2019? $ 1,800 x
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