Ken is a self$-$employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken full$-$time for the last four years. The office assistant earns $$38,500$ per year, and each drafter earns $$57,000.$ Ken's net earnings from self$-$employment $($after deducting all expenses and one$-$half of self$-$employment taxes$)$ are $$397,000.K$ Ken is considering whether to establish a SIMPLE plan and has a few questions.

Required:

a$.$ Is he eligible to establish a SIMPLE plan?

b$.$ Is he required to cover his employees under the plan?

c$.$ If his employees must be covered, what is the maximum amount that can be contributed on their behalf?

d$.$ If the employees are not covered, what is the maximum amount Ken can contribute for himself?

e$.$ If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? $($Hint: Calculate the employee amounts first$)$ lgnore any changes in Ken's self$-$employment tax.

Complete the question by entering your answers in the tabs below.

Req $D$ and $E$

If his employees must be covered, what is the maximum amount that can be contributed on their behalf?

$\backslash$table$[[$Maximum contribution for employess below $50$ years of age,$],[$Maximum contribution for employess over $50$ years of age,$],[$Maximum contribution by Ken as percentage of earnings,$],[$Maximum contribution by Ken as percentage of earnings,$\%$ for all employees who choose to participate in SIMPLE Plan$]]$Solve for C$,$ D$,$ E