Same facts as in the preceding problem except that the plan provides for a 2.5% nominal rate

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Same facts as in the preceding problem except that the plan provides for a 2.5% nominal rate for elective employee contributions. What is the maximum allowable employee and matching employer matching contribution if the plan is a:

a. SIMPLE IRA?

b. SIMPLE 401(k)?

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CCH Federal Taxation Basic Principles 2020

ISBN: 9780808051787

2020 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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Question Posted: Feb 27, 2024 03:07 AM

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Same facts as in the preceding problem except that the plan provides for a 2.5% nominal rate

Question:

Step by Step Answer:

ANSWER In a SIMPLE IRA plan a The maximum allowable employee contribution is calculated as a percent...View the full answer

CCH Federal Taxation Basic Principles 2020

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