Question
Facts: You estimate annual earned income from your employer at $53,000 plus a $3,000 bonus. In addition, you project $100 in interest, $400 in dividends
Facts: You estimate annual earned income from your employer at $53,000 plus a $3,000 bonus. In addition, you project $100 in interest, $400 in dividends and $1,500 in long-term capital gains for the year. The maximum your employer will contribute to your traditional 401(k) plan is 50 cents for each dollar you contribute up to a maximum employer contribution of 3% of your annual earned income.
Personal Goal: Save 15% of your annual earned income. Determine for each of two Scenarios your after-tax contribution (out-of-pocket cost) to save that 15%.
Scenario 1:
1. What is the maximum amount your employer will contribute
to your traditional 401(k) plan?..................................................$__________
2. To get the employer
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