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Paul, age 37, participates in a Section 401(k) plan which allows employees to contribute up to 15 percent of their

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Paul, age 37, participates in a Section 401(k) plan which allows employees to contribute up to 15 percent of their salary. His annual salary is $125,000 in 2020. What is the maximum he can contribute, on a tax-deferred basis under a salary reduction agreement, to this plan?
a. $24,000
b. $20,500
c. $18,500
d. $18,750
e. None of the above

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Income Tax Fundamentals 2021

Income Tax Fundamentals 2021

ISBN: 9780357141366

39th Edition

Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill

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Question Details
Chapter # 5- Deductions For and From AGI
Section: Multiple Choice
Problem: 14
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Question Posted: September 28, 2023 03:35:48
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