Exercise 19-13 (Algorithmic) (LO. 4) Joanna, age 44, defers $29,300 in a qualified Solo 5 401(k) plan in 2020. a. What amount must be returned to Joanna and by what date? The $ 5,860 X excess over the annual limit, along with the appropriate earnings, must be returned to Joanna by April 15, 2021 b. In what year will the amount be taxed? 2020 c. What percent of tax will be taxed to Joanna if not returned by what date? There will be a 20 X % tax on Joanna's employer on any amount not returned within 212 months after the close of the plan year. Feedback Check My Work A $ 401(k) plan allows participants to elect to receive up to a statutory amount cash (taxed currently) or to have a contribution made on their behalf to a profit sharing or stock bonus plan. The plan may be in the form of a salary-reduction agreement under which a contribution will be made only if the participant elects to reduce his or her compensation or to forgo an increase in compensation