Question

8 Required information Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2018, Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee's 401k) plan, Matthew would like to maximize his contribution to his 401(K) account after SV's contribution to the money purchase plan. (Leave no answer blank. Enter zero if applicable.) Part 3 of 4 eBook Pint Assuming Matthew's annual salary is $66,000, c-1. What amount will SV contribute to Matthew's money purchase plan? c-2. What can Matthew contribute to his 401k) account in 2018 Complete this question by entering your answers in the tabs below. Req ci Req c2 What amount will SV contribute to Matthew's money purchase plan? 9.900

Answer 1

As per the rules $ regulations,I am able to solve only one question at a time so if you wants to solve another question post it again ( and also you provide the incomplete record for 2 question because facts of part c is not provided.)

8 c1 $9900

c2 $18500

For 2018,the sum of employer and employee contributions to an employee’s defined contribution plan is limits to $55000 or 100% of the employee’s compensation for the year. So contributions to Matthew’s defined contribution accounts for 2012 are limited to $50,000. Under its plan, SV contributes $9900 ($66000*15%) to Matthew’s money purchase pension plan . However, the tax code limits the contribution to $55,000. Because the limit on overall contributions to Matthew’s defined contribution plans is $55000 and the limit on contributions by an employee to a 401(k) plan is $18500, Mathew may still contribute $18500 to his 401(k) account in 2018.