Fred Is a Self-Employed Accountant with Gross Earned Income of $140,000

Multiple Choice

Fred is a self-employed accountant with gross earned income of $140,000 per year (after the deduction for one-half of any self-employment tax) . He has a profit sharing plan (i.e., defined contribution plan) . What is the maximum amount Fred can contribute to his retirement plan?

A) $28,000
B) $35,000
C) $40,000
D) $140,000
E) None of the above