Complete the investment chart based on the facts given for each situation. Assume each person is...
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Complete the investment chart based on the facts given for each situation. Assume each person is following Dave's advice of investing 15% of their annual household income. Remember to follow the sequence of contributions recommended in the lesson. Joe INVESTMENT Melissa Tyler & Megan Adrian David & Britney Brandon Chelsea ANNUAL SALARY $40,000 $55,000 $105,000 $111,000 $150,000 $35,000 $28,000 COMPANY MATCH 1:1 up to 5% 1:2 up to 6% No Match 1:1: up to 3% No Match. 2:1 up to 6% No Match 401(K) ROTH IRA TOTAL ANNUAL INVESTMENT > Joe will take advantage of the company match [5% of salary) then put the rest in a Roth IRA. ▸ Melissa will fund the 401(k) up to the match and put the remainder in her Roth. ▸ Tyler & Megan can each fund a Roth, then put the remainder in the 401(k). With no match, fund the Roth first (based on 2011 contribution of $5,000 per individual). ▸ Adrian is not eligible to open a Roth IRA because he makes too much money. He will put his entire 15% into his 401(k). ▸ David and Britney are still within the guidelines for a married couple [based on 2011 contribution of $5,000 per individual). After maxing out the IRA, they will fund the 401(k). ▸ Brandon will fund his 401(k) up to the match, then put the remainder in his Roth. ▸ Chelsea will fund her Roth IRA. Complete the investment chart based on the facts given for each situation. Assume each person is following Dave's advice of investing 15% of their annual household income. Remember to follow the sequence of contributions recommended in the lesson. Joe INVESTMENT Melissa Tyler & Megan Adrian David & Britney Brandon Chelsea ANNUAL SALARY $40,000 $55,000 $105,000 $111,000 $150,000 $35,000 $28,000 COMPANY MATCH 1:1 up to 5% 1:2 up to 6% No Match 1:1: up to 3% No Match. 2:1 up to 6% No Match 401(K) ROTH IRA TOTAL ANNUAL INVESTMENT > Joe will take advantage of the company match [5% of salary) then put the rest in a Roth IRA. ▸ Melissa will fund the 401(k) up to the match and put the remainder in her Roth. ▸ Tyler & Megan can each fund a Roth, then put the remainder in the 401(k). With no match, fund the Roth first (based on 2011 contribution of $5,000 per individual). ▸ Adrian is not eligible to open a Roth IRA because he makes too much money. He will put his entire 15% into his 401(k). ▸ David and Britney are still within the guidelines for a married couple [based on 2011 contribution of $5,000 per individual). After maxing out the IRA, they will fund the 401(k). ▸ Brandon will fund his 401(k) up to the match, then put the remainder in his Roth. ▸ Chelsea will fund her Roth IRA.
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To complete the investment chart for each person follow these steps Calculate the total annual inves... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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