1. Apply What You've Learned - Managing Your Employer's Retirement Plan Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $45,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 3% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account. Statement An Advantage Not an Advantage You receive an instant return of 50%. Some retirement plans also provide for matching contributions by their employers. By being able to make contributions on a pre-tax basis, your tax liability is reduced. The maximum dollar amount your employer will contribute to your 401(k) account this year is 1. Apply What You've Learned - Managing Your Employer's Retirement Plan Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $45,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 3% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account. Statement An Advantage Not an Advantage You receive an instant return of 50%. Some retirement plans also provide for matching contributions by their employers. By being able to make contributions on a pre-tax basis, your tax liability is reduced. The maximum dollar amount your employer will contribute to your 401(k) account this year is