Question

3. Sally, age 26, who has worked for a XYZ company in the past 4 years. XYZ has a defined contribution profit sharing plan using the least generous graduated vesting. Sally's account balance reflects the following: $15,000 $8,000 Profit Sharing Plan Employer Contribution Earnings on employer contribution 401(k) Plan Sally's deferral contribution Earnings on Sally's deferral contribution Employer's matching contribution $12,000 $6,000 $10,000 Reviewing the account, and assuming that Sally terminated employment now when the account balance was as above, how much could she take with her?

Answer 1

answer In in at this the contribution made by Employee 401(k) plan could be with drawn fuilly. time of leaving the organization. Now. The matching confribution made by Employees is vested on basis of different vesting. Schedules. And we know that the vasting and it works as below. After one year amount vested will be 0% Similarly After two year amount vested will be a0% amount verled will be After for amount vested will be Golf After amount vested will be After amount vested will be toot

Nowo, calculate the amount of profit we can Sharing plan = 606 (; 15000 + 8000 = 23000) 23000) X0.60 = 13800 And the as we discused above we have to know amount of 40iLks plan So, . Amount of 401CkJ plan = 12000+6000+ 60% 10000 = 12000 +6000 ot 6000 = 24000 NOCO, we know that total amount salley could take with her will be The amount of profet sharing plan & The amout of colk plan 13800 ot 24000