Question
1) In 2018, Nina contributes 11 percent of her $110,000 annual salary to her 401(k) account. She expects to earn a 6 percent before-tax rate
1) In 2018, Nina contributes 11 percent of her $110,000 annual salary to her 401(k) account. She expects to earn a 6 percent before-tax rate of return. Assuming she leaves this (and any employer contrributions) in the account until she retires in 30 years, what is Nina's after-tax accumulation for her 2018 contributions to her 401(k) account?
A) Assume Nina's marginal tax rate at retirement is 30 percent
after tax proceeds from distribution _____ B) Assume Nina's marginal tax rate at retirement is 20 percent
after tax proceeds from distribution_______
C) Assume Nina's marginal tax rate at retirement is 40 percent
after tax proceeds from distribution ______
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