Chapter 14 Financial Planning Exercise 9 Effective after-tax cost of 401(k) contribution Brad Shin is an operations manager for a large manufacturer. He earned $74,000 in 2015 and plans to contribute the maximum allowed to the firm's 401(k) plan. Assuming that Brad is in the 25% tax bracket, calculate his taxable income and the amount of his tax savings. Assume an individual employee can put as much as $18,000 into a tax-deferred 401(k) plan. Recall that standard deduction is $6,300 in 2015 and personal exemption amount is $4,000. If necessary, round the answer for tax savings to the nearest cent. Taxable income $ Amount of his tax savings $ How much did it actually cost Brad on an after-tax basis to make this retirement plan contribution? If necessary, round the answer to the nearest cent. $ TA Chapter 14 Financial Planning Exercise 9 Effective after-tax cost of 401(k) contribution Brad Shin is an operations manager for a large manufacturer. He earned $74,000 in 2015 and plans to contribute the maximum allowed to the firm's 401(k) plan. Assuming that Brad is in the 25% tax bracket, calculate his taxable income and the amount of his tax savings. Assume an individual employee can put as much as $18,000 into a tax-deferred 401(k) plan. Recall that standard deduction is $6,300 in 2015 and personal exemption amount is $4,000. If necessary, round the answer for tax savings to the nearest cent. Taxable income $ Amount of his tax savings $ How much did it actually cost Brad on an after-tax basis to make this retirement plan contribution? If necessary, round the answer to the nearest cent. $ TA