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If Sarah left Woodridge Preparatory School today, what would be her vested retirement balance? Hint: Vesting is based on years of service, NOT years of
If Sarah left Woodridge Preparatory School today, what would be her vested retirement balance? Hint: Vesting is based on years of service, NOT years of participation. Salary-Sarah 27,000.00 Sarah Steiner Redding grew up in a wealthy family. She graduated from a private university with a bachelor of science degree in elementary education. She has been employed as a fourth grade teacher at a private school, Woodridge Preparatory School, for the past five years. To further enrich her students (and for additional income), Sarah tutors three students each week. She incurs no expenses when providing this tutoring. Sarah is enrolled in a defined contribution plan in which the school contributes 7% of her salary and she contributes 3%. The plan provides several investment options: bond funds, stock funds, and money market accounts. She has chosen to invest this contribution in fixed instruments (bond funds). The plan has a 2- to 6-year graduated vesting schedule, and she has been a participant for four years. The total balance of her account is $16,500. Although she has not participated, also offers a 403 (b) plan for salary deferrals. There are no employer contributions with the 403(b). what would be her vested retirement balance
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