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Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2021, Matthew participates in SVs money purchase pension plan (a defined contribution plan) and in his companys 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employees 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 employees 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SVs contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.)

Assuming Matthews annual salary is $64,000,

c-1. What amount will SV contribute to Matthews money purchase plan?

c-2. What amount can Matthew contribute to his 401(k) account in 2021?

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Kathleen, age 56, works for MH Incorporated in Dallas, Texas. Kathleen contributes to a Roth 401(k), and MH contributes to a traditional 401(k) on her behalf. Kathleen has contributed $35,040 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $58,400 and the balance in her traditional 401(k) is $45,600. Kathleen needs cash because she is taking a month of vacation to travel the world. Answer the following questions relating to distributions from Kathleens retirement accounts assuming her marginal tax rate for ordinary income is 24 percent.

b. If Kathleen receives a $13,500 distribution from her Roth 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution?