Rex, age 47, an employee at Water Waste, is considering contributing to a 401(k) plan during 2022. Which of the following statements are true? Rex can contribute $20,500 to a 401(k) plan and an additional $20,500 to a 401(k) Roth account in the current year. If Rex does make an elective deferral contribution, the amount is not currently subject to income or payroll taxes. Rex can make a $27,000 elective deferral contribution to a 401(k) plan for 2022. O Water Waste must deposit Rex's elective deferral contribution to the plan as soon as reasonably possible
Rex, age 47, an employee at Water Waste, is considering contributing to a 401(k) plan during 2022. Which of the following statements are true? Rex can contribute $20,500 to a 401(k) plan and an additional $20,500 to a 401(k) Roth account in the current year. If Rex does make an elective deferral contribution, the amount is not currently subject to income or payroll taxes. Rex can make a $27,000 elective deferral contribution to a 401(k) plan for 2022. O Water Waste must deposit Rex's elective deferral contribution to the plan as soon as reasonably possible
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 40P
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Transcribed Image Text:Rex, age 47, an employee at Water Waste, is considering contributing to a 401(k) plan during 2022. Which of the following
statements are true?
Rex can contribute $20,500 to a 401(k) plan and an additional $20,500 to a 401(k) Roth account in the current year.
If Rex does make an elective deferral contribution, the amount is not currently subject to income or payroll taxes.
Rex can make a $27,000 elective deferral contribution to a 401(k) plan for 2022.
O Water Waste must deposit Rex's elective deferral contribution to the plan as soon as reasonably possible
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