What is the maximum amount Amber can elect for salary

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Question - Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old.

Required -

a. What is the maximum amount Amber can elect for salary deferral treatment for 2019?

b. If Amber elects salary deferral treatment for the above amount, how much can she save in taxes? Her tax liability for 2019 would be reduced by $.'

c. What is the recommended amount that Amber should elect as salary deferral treatment for 2019?

Reference no: EM132474078

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