Amber's employer, Lavender, Inc., has a § 401 (k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for2019?

For 2019, the maximum amount that any individual can elect for salary deferral treatment on a 401k distribution is the lesser between: 100% of their salary or $19,000.

in this case, Amber earns much more than $19,000, so the lesser amount would be $19,000.

If Amber contributes more than $19,000 to her 401k account, then she would have to pay taxes for the extra amount contributed.