Kathy Is 60 Years of Age and Self-Employed

Multiple Choice

Kathy is 60 years of age and self-employed. During 2020 she reported $500,000 of revenues and $100,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to a SEP IRA for 2020?Assume she pays $27,787 in self-employment for 2020. (Round your final answer to the nearest whole number.)

A) $57,000.
B) $63,500.
C) $77,221.
D) $372,213.