Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alex is 31 years old and has lived in Los Alamos. New Mexico, for the last four years, where he works at the Los Alamos

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Alex is 31 years old and has lived in Los Alamos. New Mexico, for the last four years, where he works at the Los Alamos National Laboratory (IANL). LANL provides employees with a 401 (k) plan, and for every $1 an employee contributes (up to 9 percent of the employee's salary. LANL contributes $3 a 3 to-1 match). 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 $170,000. Alex's marginal tax rate is 24 percent in 2022 Answer the following questions relating to Alex's retirement savings in 2022. (Use Exthibit 13-2. Exhibit 1333) EXHIBIT 13-2 Defined Contribution Plans Minimum Vesting Schedules* -Percent of employer contributions no longer subject to forfeiture. Souree: $411(a). EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for Distributions in 2022 "The applicable percentage is colculated by dividing I by the relevant distribution period. Source: Theasury Decision 9930 (November 8, 2020), hutps:-/hublic-inspection federalregzster gov2020-24223, .ddf c. In need of cash to bulid a home theater, Alex withdrew $30,000 from his traditional 401(k) account. What amount of the withdrawal, after taxes and penalties, will Alex have available to complete his project? C. In need of cash to buld a home theater, Alex withdrew $30,000 from lis traditional 401(k) account. What amount of the withdrawal, after taxes and penalties, will Alex have available to complete his project

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survival Audit And Calculations Manual

Authors: Dr Joseph Lee Bounds

1st Edition

1505425573, 978-1505425574

More Books

Students also viewed these Accounting questions