What is pat personal tax treatment due to transaction

Reference no: EM131961281

Question: A contribution for this tax year has just been made t King COrp qualified retirement plan. Pat King , the president and sole shareholder, has had $50,000 allocated to his account in the qualified plan. What is Pat's personal tax treatment due to his transaction?

a) Pat has $50,000 of currently taxable income due to this transaction.

b) Pat can use five-year forward income averaging to report this additional $50,000 of income.

c) Pat can reallocate this income to another family member to avoid currently taxable income.

d) Pat has no currently taxable income due to this transaction.

Reference no: EM131961281

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