Marcus works for WHAT? (Worlds Hardest Accounting Techniques?). At WHAT?, Marcus is the creator of accounting questions that are used in the CPA exam and for graduate course in accounting at BYU, Notre Dame, the University of Texas and at various other highly ranked accounting institutions. WHAT? provides employees with a 401(k) plan, and for every $1 an employee contributes (up to 9 percent of the employee's salary), WHAT? contributes $3 (a 3-to-1 match). The plan provides a six-year graded vesting schedule. Marcus is now in his fifth year working for WHAT?, and his current-year salary is $170,000. Marcus's marginal tax rate is 24 percent in 2022.

Breece CPA has asked that you answer his questions in a letter and that you supply the documentation to support your results in an excel file.

Mr. Burger would like your assistance with the following items:

After 4 years, Marcus contributed $45,000 to his 401(k) and his employer has contributed $115,000 to the plan. The plan has an account balance of $175,000. What is Marcus's vested account balance in his 401(k)?

Marcus considers his employer's matching contributions "free money," he wants to maximize the amount of WHAT?'s contributions. What is the least amount Marcus can contribute and still maximize WHAT?'s contribution?

Since Marcus enjoys a really good and confusing accounting question, he has decided to withdraw $30,000 from his traditional 401(k) account to build a special accounting test creation lab for his personal use. What amount of the withdrawal, after taxes and penalties, will Marcus have available to complete his project?

Marcus would also like to know what the after-tax distributions would be if he contributed $10,000 to his traditional 401(k) account this year assuming that in 30 years, Marcus retires (at age 61) and withdraws the $10,000 contribution made this year and all the earnings generated by the contribution. Marcus earns a 6 percent annual before-tax rate of return.