Question
Leslie participates in IBO's nonqualified deferred compensation plan. For 2022, she is deferring 10 percent of her $300,000 annual salary. Based on her deemed investment
Leslie participates in IBO's nonqualified deferred compensation plan. For 2022, she is deferring 10 percent of her $300,000 annual salary. Based on her deemed investment choice, Leslie expects to earn a 7 percent before-tax rate of return on her deferred compensation, which she plans to receive in 10 years. Leslie's marginal tax rate in 2022 is 32 percent. IBO's marginal tax rate is 21 percent (ignore payroll taxes in your analysis).
) Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
a. Assuming Leslie's marginal tax rate in 10 years (when she receives the distribution) is 33 percent, what is Leslie's after-tax accumulation on the deferred compensation?
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