Qualified Retirement Plans Including Section 401(K) Plans (LO 5.4) Determine the outcome of each of the following contributions or distributions from a small-business qualified retirement plan: a. As an employee of Wumbo Company, Margo is enrolled in the SEP and in 2022, Wumbo provides a contribution of 5 percent of Margo's salary or $2,500. Describe the taxation of the contribution to Margo and Wumbo. As a qualified plan, the contribution is from Margo's income in the current year. The contribution plus earnings when distributed. Wumbo a current year deduction. b. Patrick works at the Krab Shack as a manager. In 2022 , the Krab Shack operates a SIMPLE IRA plan and Patrick contributes $10,000 ( 10 percent of his $100,000 salary). Krab Shack matches the first 3 percent of the employee's annual wages. Describe the tax treatment of Patrick's contribution and the Krab Shack's match to the SIMPLE IRA. Explain whether Patrick has exceeded the maximum contrib)fition allowed to the SIMPLE IRA versus a traditional or Roth IRA in 2022 assuming he is age 45 versus age 55 . Patrick's contribution is and the match is from his 2022 income. Both to Patrick at distribution. The limits on a SIMPLE IRA are than those for a traditional and Roth IRA. The 2022 limit for a SIMPLE IRA is \$ c. As an employee of Undersea Labs, in 2022 Sandy, age 35, elects to defer $6,000 of her salary into the company's Roth 401(k) plan. Sandy's salary is $160,000 in 2022. Explain how the Roth 401(k) contribution limitations apply to Sandy. A Roth 401(k) both larger contributions and also the same income limitations for contributions as a typically individually owned Roth IRA