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Charles puts 8% of his paycheck in a Traditional 401(k) plan. He earns $100,000 per year. His average tax rate is 19% and his marginal
Charles puts 8% of his paycheck in a Traditional 401(k) plan. He earns $100,000 per year. His average tax rate is 19% and his marginal tax rate is 24%. His employer matches contributions on the first 5% his salary dollar for dollar (100%) and the next 5% for 50 cents per dollar (50%). How much in total contributions will go into his account (include his contribution and the company's contribution.)
| A. | $18,000 | |
| B. | $0 | |
| C. | $14,500 | |
| D. | $15,500 | |
| E. | $12,580 |
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