Question

federal income tax question

Question 2 of 10. Jenna, a small business owner, started a SIMPLE-IRA plan on January 1 2019. She makes a 3% matching contribution to the accounts. Her employees are as follows: • Henry, $24,000 compensation, defers 5% of salary • Justine, 535,000 compensation, defers 10% of salary • Niam, $40.000 compensation, defers 0% of salary Jenna's net self-employment income is $90.000 and she contributes 10% of her salary. How much does Jenna's business contribute in matching contributions to the SIMPLE accounts? $4.470 $5,670 $9,450 $13,700 Mark for follow up Save / Return Later Summary Next >>

Answer 1

Solution

As per Federal Income Tax Provision

Jenna's business countribution will be $ 13700 as calcultaed follow:-

Contribution By Employees

Henry =    5% on $24000 = $1200

Justine = 10% on $35000 =                   $3500

Total    =                                               $4700

Add:

Own Countributio 10% on                      $9000

$90000

Total Business Contribution ($)             13700