(Solution) - In October 2010 Clark Corporation decides to establish a SIMPLE -(2025 Original AI-Free Solution)

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In October 2010, Clark Corporation decides to establish a SIMPLE-401(k) for its employees. Clark meets all requirements for establishing a SIMPLE. The company has notified its employees that in 2011, it will fund the SIMPLE-401(k) by contributing 2% of each employee?s salary to the plan. Determine the maximum employee and employer contribution for Lei, an employee, in each of the following cases:
a. Lei?s salary is $62,000.
b. Lei?s salary is $280,000.
c. Assume the same facts as in part b, except that Clark funds the plan by matching employees? contributions up to a maximum of 3% of each employee?s compensation. Lei contributes the maximum.
d. Assume the same facts as in part b, except that Clark establishes a SIMPLE-IRA and Lei contributes the maximum.
e. Assume the same facts as in part d, except that Clark funds the plan by matching an employee?s contributions up to a maximum of 3% of each employee?s compensation. Lei contributes the maximum.