A firm pays $22,000,000 in compensation to its 401K participants in 2020. What is the maximum...
A firm pays $22,000,000 in compensation to its 401K participants in 2020. What is the maximum tax deferred contribution the firm can make in 2020?
|
$22,000,000 |
||
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$25,000 |
||
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$11,000,000 |
||
|
$5,500,000 |
Homework Answers
As per 401k a firm can make maximum tax deferred equal to 50% of compensation to its 401K
$22,000,000*50%= $11000,000
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