Paul, age 37, participates in a Section 401(k) plan which allows employees to contribute up to 16
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Paul, age 37, participates in a Section 401(k) plan which allows employees to contribute up to 16 percent of their salary. His annual salary is $90,000 in 2016. What is the maximum he can contribute, on a tax-deferred basis under a salary reduction agreement, to this plan?
a. $14,400
b. $20,500
c. $17,500
d. $13,500
e. None of the above
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Related Book For
Income Tax Fundamentals 2017
ISBN: 9781305872738
35th Edition
Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller
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