Annual Compensation: $60,000 (monthly $5,000)

401K (403B) Contribution Percent 6%

Company match 50% up to 6% (e.g. 3%- 50% x 6%)

Tax Rate 25%

Annual Investment Return Rate 8%

1. Since 401K (403B) contributions are taken out pretax, I would like for you to calculate the difference in monthly take home pay under two scenarios:

1. Without 401K (403B) contributions
2. With 401K (403B) contributions (hint: this number will be lower, but will be offset by your savings net of taxes)

The intent of this calculation is to determine how much your take home (paycheck) will be reduced if you enroll in a 401K (403B).