Kathy Is 60 Years of Age and Self-Employed

Multiple Choice

Kathy is 60 years of age and self-employed. During 2020, she reported $100,000 of revenues and $40,000 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 an individual 401(k) for 2020? Assume she paid $8,478 of self-employment tax for 2020. (Round your final answer to the nearest whole number.)

A) $30,652.
B) $37,152.
C) $57,000.
D) $63,500.