A contribution for this tax year has just been made t King COrp qualified retirement plan. Pat King , the president and sole shareholder, has had $50,000 allocated to his account in the qualified plan. What is Pat's personal tax treatment due to his transaction?
a)Pat has $50,000 of currently taxable income due to this transaction.
b)Pat can use five-year forward income averaging to report this additional $50,000 of income.
c)Pat can reallocate this income to another family member to avoid currently taxable income.
d) Pat has no currently taxable income due to this transaction.