ZuoTi.Pro
Question

An employee contributes 9% of his salary to his 401(k) plan and the employer matches with...

An employee contributes 9% of his salary to his 401(k) plan and the employer matches with 40 percent of the first 6% of the employee’s salary. The employee earns $90,000 and is in a 28% tax bracket. If the employee earns 2.5% on the plan investments, what is his one year rate of return relative to the net an amount of money he invested? (Please show step by step)

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

solutions . Guven data, . An employee contributes 9% of his salasy to his woick) plan and the employer match with you of the

0 0
Add a comment
Know the answer?
Add Answer to:
An employee contributes 9% of his salary to his 401(k) plan and the employer matches with...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • In 2019, Nitai (age 40) contributes 8 percent of his $187,000 annual salary to a Roth 401(k) account sponsored by his em...

    In 2019, Nitai (age 40) contributes 8 percent of his $187,000 annual salary to a Roth 401(k) account sponsored by his employer, AY Inc. AY Inc. matches employee contributions to the employee’s traditional 401(k) account dollar-for-dollar up to 8 percent of the employee’s salary. Nitai expects to earn a 7 percent before-tax rate of return. Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 30 years and that he makes no additional...

  • In 2014, Nitai contributes 10 percent of his $102,000 annual salary to a Roth 401 (k)...

    In 2014, Nitai contributes 10 percent of his $102,000 annual salary to a Roth 401 (k) account sponsored by his employer, AY Inc. AY Inc. matches employee contributions dollar for dollar up to 10 percent of the employee's salary to the employee's traditional 401(k) account. Nitai expects to earn a 8 percent before-tax rate of return Assuming he leaves his contributions in the Roth 401 (k) and traditional 401 (k) accounts until he retires in 25 years, what are Nitai's...

  • In 2018, Nitai (age 40) contributes 10 percent of his $135,000 annual salary to a Roth...

    In 2018, Nitai (age 40) contributes 10 percent of his $135,000 annual salary to a Roth 401(k) account sponsored by his employer, AY Inc. AY Inc. matches employee contributions to the employee’s traditional 401(k) account dollar-for-dollar up to 10 percent of the employee’s salary. Nitai expects to earn a 8 percent before-tax rate of return. Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 25 years and that he makes no additional...

  • In 2018, Nitai (age 40) contributes 8 percent of his $122,000 annual salary to a Roth...

    In 2018, Nitai (age 40) contributes 8 percent of his $122,000 annual salary to a Roth 401(k) account sponsored by his employer, AY Inc AY Inc. matches employee contributions to the employee's traditional 401(k) account dollar-for-dollar up to 8 percent of the employee's salary. Nitai expects to earn a 8 percent before-tax rate of return Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 20 years and that he makes no additional...

  • "Kevin is considering his new employer's 401(k) plan that has a 100% match with no limit....

    "Kevin is considering his new employer's 401(k) plan that has a 100% match with no limit. If he earns a $47,000 salary and he saves $6,000/yr for his retirement, how much money would his employer deposit to his acccount for him as a match?"

  • QUESTION 4 Linda participates in a matching 401(k) plan and earns $100,000. The company matches $0.50 per $1 she contri...

    QUESTION 4 Linda participates in a matching 401(k) plan and earns $100,000. The company matches $0.50 per $1 she contributes up to five percent of co mpensation. Calculate the amount of the employer match for the following contributions from Linda: (enter your answer with numbers only, no commas, dollar signs, dashes, etc) If Linda contributes $3,000, her employer will contribute If Linda contributes $5,000, her employer will contribute If Linda contributes $15,500, her employer will contribute

  • An employer offers a 401-K plan under the following terms: Employer will match 60% of all...

    An employer offers a 401-K plan under the following terms: Employer will match 60% of all contributions up to 5%. If an employee saves 8% of his/her salary, then the employer will match ___ of their salary.

  • In 2019, Maggy (34 years old) is an employee of YBU Corp. YBU provides a 401(k)...

    In 2019, Maggy (34 years old) is an employee of YBU Corp. YBU provides a 401(k) plan for all its employees. According to the terms of the plan, YBU contributes 50 cents for every dollar the employee contributes. The maximum employer contribution under the plan is 15 percent of the employee’s salary (if allowed, YBU contributes until the employee has contributed 30 percent of her salary). (Use Exhibit 13-2) a. Maggy worked for YBU Corporation for 3½ years before deciding...

  • Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put...

    Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of your salary. If your monthly salary is $2250 and you contribute just enough to get the match, then how much money will be added to your account in total over one year? Your Answer: Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of...

  • Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if...

    Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of your salary. If your monthly salary is $3550 and you contribute just enough to get the match, then how much money will be added to your account in total over one year?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT