Question
In 2015, Nina contributes 11 percent of her $126,000 annual salary to her 401(k) account. She expects to earn a 10 percent before-tax rate of
In 2015, Nina contributes 11 percent of her $126,000 annual salary to her 401(k) account. She expects to earn a 10 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Ninas after-tax accumulation from her 2015 contributions to her 401(k) account?
A. Assume nina's marginal tax rate is at 30 percent? solve for these next five equations
Before- Tax Contribution?
Future Value?
Future value of Contribution?
Taxes Payable on Distribution?
After tax proceeds from distribution?
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