Question
George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,744. He has just decided to join the company's Simple
George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,744. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: a. What is the maximum that he can contribute into this retirement fund? $ b. What would be the company's contribution? $ c. What would be his weekly take-home pay if he contributes the maximum allowed retirement contribution (married, 2 allowances, wage-bracket method, and a 2.3% state income tax on total wages)? Click here to access the Wage-Bracket Method Tables. $ d. What would be his weekly take-home pay without the retirement contribution deduction? $
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