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Given that Dallas, a 44-year-old taxpayer, earned $80,000 in wages, what is the maximum contribution he can make to his 401(k) plan in 2022?

A) $18,500
B) $19,500
C) $26,000
D) $27,000

User Marijan
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1 Answer

4 votes

Final answer:

A 44-year-old taxpayer like Dallas can contribute a maximum of $20,500 to his 401(k) plan in 2022, not including any catch-up contributions for those 50 and over.

Step-by-step explanation:

The maximum contribution Dallas, a 44-year-old taxpayer, can make to his 401(k) plan in 2022 is $20,500. This amount applies to individuals under the age of 50.

Since Dallas does not qualify for the additional catch-up contribution (which is available for those aged 50 and over), he cannot contribute the higher amount of $27,000, which includes the catch-up contribution of $6,500.

The maximum contribution Dallas can make to his 401(k) plan in 2022 is $19,500 (option B).

A 44-year-old taxpayer like Dallas can contribute a maximum of $20,500 to his 401(k) plan in 2022, not including any catch-up contributions for those 50 and over.

User Mic Fok
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