Alex is 31 years old and for the last four years he has worked at the Los Alamos National Laboratory (LANL). LANL provides employees with a 401(k) plan and for every $1 an employee contributes, LANL contributes $3 (a very generous 3 to 1 match, but only for the first 9% of Alex's salary) The plan provides a six-year graded vesting schedule. Alex is now in his fifth year working for LANL, and his current year salary is $150,000. Alex's marginal tax rate is 28 percent i 2014. Earning have accrued ratably on the contributions made by Alex and LANL. Answer the following questions relating to Alex's retirement savings in 2014.

1. Assume that over the past four years, Alex has contributed $45,000 to his 401(k) and his employer has contributed $115,000 to the plan. The plan has an account balance of $175,000. What is Alex's vested account balance on his 401(k)?

2. Because Alex considers his employer's matching contributions "free money," he wants to maximize the amount of LANL's contributions. What is the least amount Alex can contribute and still maximize LANL's contribution?

3. In need of cash to build a home theater, Alex withdrew 30,000 from his traditional 401(k) account. What amount of the withdrawal, after taxes and penalties, wil Alex have available to complete his project?