Question
Chapter 13 1) Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMMs defined benefit plan. Under the plan. for every
Chapter 13
1) Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM"s defined benefit plan. Under the plan. for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM. She retired on January 1, 2018. Before retirement, her annual salary was $630,000. $660,000, and $690,000 for 2015,2016, and 2017. What is the maximum benefit Alicia can receive in 2018?
2) Marissa participates in her employer's nonqualified deferred compensation plan. For 2018, she is deferring 15 percent of her $405,000 annual salary.
Assuming this is her only source of income and her marginal income tax rate is 32 percent, how much tax does Marissa save in 2018 by deferring this come? (Ignore payroll taxes)
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