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Artyom0805 [142]
2 years ago
12

Question 56 of 75. Louise is a 29-year-old taxpayer who will use the head of household filing status. Her 2020 modified adjusted

gross income is $48,000. During the year, she made a $1,500 contribution to her employer's 401(k) plan. She has never taken a distribution from any retirement plan. The maximum amount Louise may receive for the retirement savings contributions credit (Saver's Credit) is:
Business
1 answer:
Andre45 [30]2 years ago
7 0

Considering the situation described above, the maximum amount Louise may receive for the retirement savings contributions credit (Saver's Credit) is "<u>$150</u>."

This is because according to the Internal Revenue Service regulations, for individuals filing under the head of household filing status, with an adjusted gross income of $31,876 - $48,750, such person would only be able to receive 10% of his retirement savings contributions credit (Saver's Credit).

Therefore, Louise has only contributed $1,500 to her employer's 401(k) plan. Consequently, she can only receive 10%, which is "<u>$150</u>."

Hence, in this case, it is concluded that the correct answer is "<u>$150</u>."

Learn more about Savers credit here: brainly.com/question/25767045

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