Please help with over 50? Check Your Work - Microsoft Edge ezto This window show
ID: 2570547 • Letter: P
Question
Please help with over 50?
Check Your Work - Microsoft Edge ezto This window shows wnat is correct and incorrect for the work you have completed so far Even if all of the work you have done so far is correct. you may not have completed everything. 2. 6.00 points 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 $39,000 per year and each drafter eans $58,000. Ken's net eamings from self-employment (after deducting all expenses and one-half of self-employment taxes) are $328,000. Ken is considering whether to establish an SIMPLE plan and has a few questions. a. Is he eligible to establish an SIMPLE plan? b. Is he required to cover his e c. If his employees must be c 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.) Ignore any under the plan? what is the maximum amount that can be contributed on their behalf? changes in Ken's self-employment tax. Answer is complete but not entirely correct. Complete the question by entering your answers in the tabs below Req a and b Req c Req d ande c. If his employees must be covered, what is the maximum amount that can be contributed on their behalf? 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 eamings Maximum contribution by Ken as percentage of eamings 2,500 10,000 3 % | for employees who choose to participate in SIMPLE Plan for all employees 3-53 PM O Type here to search ^4x 11/13/2017Explanation / Answer
If the employee is 50 or older, hes is allowed an additional catch-up contribution of up to $3,000 on top of the $12,500 limit.
This means the maximum contribution for employees over 50 years of age is $15,500.