Kirk Bennett, a cash-basis taxpayer, is a self-employed accountant. During 2016, he established a qualified defined contribution retirement plan of which he will be the only beneficiary. In examining his records for 2016, the following information is available: Earned income from self-employment- $53,000 Interest income- 6,000 Dividend income- 4,000 Net long-term capital gains- 10,000 Adjusted gross income- $73,000 What is the maximum amount that Kirk can deduct as a contribution to his qualified retirement plan for 2016?
a) $9,789
b) $53,000
c) $10,000
d) $48,945
Ans: a) $9,789
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