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Reptile [31]
4 years ago
11

Paul, age 37, participates in a Section 401(k) plan which allows employees to contribute up to 15 percent of their salary. His a

nnual salary is $125,000 in 2019. What is the maximum he can contribute, on a tax-deferred basis under a salary reduction agreement, to this plan?
Business
1 answer:
lozanna [386]4 years ago
6 0

Answer:

Paul can contribute up to $19,000 per year but his contribution based on his salary is $18,750

Explanation:

contribution = $125*0.15= $18750.

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