Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kathy is 60 years of age and self-employed. during

Kathy is 60 years of age and self-employed. During 2021 she reported $500,000 of revenues...

60.1K

Verified Solution

Question

Accounting

Kathy is 60 years of age and self-employed. During 2021 she reported $500,000 of revenues and $100,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to a SEP IRA for 2021? Assume she pays $30,986 in self-employment tax for 2021. (Round your final answer to the nearest whole number.)

  • $58,000

  • $64,500

  • $93,801

  • $86,153

2) Riley participates in his employer's 401(k) plan. He turns 71 years of age on October 15, 2021, and he plans on retiring on December 1, 2021. When must Riley receive his first distribution from the plan to avoid minimum distribution penalties?

Multiple Choice

  • By April 1, 2021.

  • By April 1, 2022.

  • By April 1, 2023.

  • By April 1, 2024.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students