Ask Question
BusinessBusiness
9 June, 08:34

Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he participates in his employer's 401 (k) plan. During the year, he contributed $3,000 to his 401 (k) account. What is Desmond's saver's credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.). a. Desmond is not married and has no dependents. His AGI after deducting his 401 (k) contribution is $34,000. Saver's credit

+2
Answers (2)
  1. 9 June, 08:46
    0
    Saver Credit of Desmond is $0.

    Explanation:

    It is to encourage the taxpayers to contribute in the retirement plans. It is applicable for all qualified retirement plans. An additional credit up to $ 2000 is available from any other deduction from the retirement account. Saver credit percentage is determined by taxpayers filling status and AGI.

    In the present case Desmond 25 years old, contributed $3000 in employer's 401 (k) plan. He wants to know his saver's credit limit in various situations.

    A) Desmond is single without dependents and his AGI after contributing to 401 (k) plan is $34000. Saver's credit of D is calculated as:

    Desmond will come under "all other filers AGI" because he is single without dependents. As his AGI is above $ 30750 there is no credit available for him.

    Hence, maximum saver credit of Desmond is $0.
  2. 9 June, 10:26
    0
    Saver's credit = $0

    Explanation:

    He is not entitled to any saver's credit, as he is not married and his AGI is greater than $32,000. Therefore the Saver's credit is equal to zero. Is also important to consider that Desmond is a head of a household and his AIG is between 31,126 and 48,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he participates in ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Assuming that overhead in the machining department is allocated on the basis of machine hours, and overhead in the assembly department is allocated on the basis of direct labor cost, the departmental overhead rates per unit of the related allocation
Answers (1)
Pumpkin Inc. sold $500 in pumpkins to a customer on account on January 1. On January 11 Pumpkin collected the cash from that customer.
Answers (1)
Matt had $325.64 in his account at the beginning of the month. He wrote checks for $114.23, $68.97, and $11.54. How much must he transfer from his savings to cover a rent check for $250?
Answers (1)
You are waiting in the lobby of the office of your dream job. you brought along your resume, and a portfolio of work to demonstrate your skills. you are playing with the clip that is holding the pages of your portfolio together.
Answers (1)
Which one of the following is not one of the seven steps in the accounting cycle? a. Count the cash b. Examine source documents c. Perhaps construct a trial balance d. Determine and post adjusting entries
Answers (1)
New Questions in Business
What allows every department of a company to store and retrieve information in real-time, allowing information to be more reliable and accessible?
Answers (1)
During the year, Salaries Payable decreased by $11000. Using the direct method of reporting cash flows from operating activities, if Salaries Expense amounted to $414000 for the year, the cash paid to employees (including deductions from gross pay)
Answers (1)
How might the consumer protection laws of a country affect global business activities
Answers (1)
Encoding refers to the creation of a common field of experience during the communication process. the process of selecting a communication channel during the communication process.
Answers (1)
Which of the following is the cost of quality classification for costs such as defects that pass through the system, such as customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair? A. Appraisal costs B.
Answers (1)
Home » Business » Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he participates in his employer's 401 (k) plan. During the year, he contributed $3,000 to his 401 (k) account.
Sign Up Forgot Password?