If a recent college, age 22, starting out earning $48,000 per year has an opportunity to participate in an employer sponsored 401(k) tax sheltered retirement account with the employer matching the first $2,400 of annual contributions made by the employee, compute the following:

If the individual employee is in the 25% marginal income tax bracket (including federal and state taxes) and invests $2,400 per year into the employer provided 401(k) tax sheltered retirement account, how much with the employees monthly net pay after taxes be reduced as a result of the $200 per month investment into the employer provided 401(k)?

$_____________________________

How much total per year will be invested into the employees account, if the individual employee invests $2,400 per year and takes full advantage of the matching funds? (Include employees and employers contributions.)

How much will the employee have in his or her 401(k) account in 20 years if a 10% average annual rate is earned on the account?

$______________________________

How much will the employee have in the 401(k) account in 30 years if a 10% average annual rate is earned on the account?

$______________________________

How much will the employee have in the 401(k) account at age 67 if a 10% average annual rate is earned on the account

$______________________________