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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.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92798938

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