Ambers employer, Lavender, Inc., has a 401(k) plan that permits salary deferral elections by its employees.
Question:
Amber’s employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber’s salary is $99,000, her marginal tax rate is 25%, and she is 42 years old.
a. What is the maximum amount Amber can elect for salary deferral treatment for 2017?
b. If Amber elects salary deferral treatment for the amount in part (a), how much can she save in taxes?
c. What amount would you recommend that Amber elect for salary deferral treatment for 2017?
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a The maximum amount for which Amber can elect 401k plan salary defe...View the full answer
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Related Book For 
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
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