Heather has been an active participant in a defined benefit plan for 19 years. During her last

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Heather has been an active participant in a defined benefit plan for 19 years. During her last 6 years of employment, Heather earned $42,000, $48,000, $56,000, $80,000, $89,000, and $108,000, respectively (representing her highest income years).

a. Calculate Heather's maximum allowable benefits from her qualified plan (assume that there are fewer than 100 participants).

b. Assume that Heather's average compensation for her three highest years is $199,700. Calculate her maximum allowable benefits.

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South Western Federal Taxation Individual Income Taxes 2017

ISBN: 9781305873988

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen

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Question Posted: Sep 15, 2017 12:42 PM

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Heather has been an active participant in a defined benefit plan for 19 years. During her last

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a The limitation is the smaller of 210000 in 2016 indexed each year o...View the full answer

South Western Federal Taxation Individual Income Taxes 2017

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