Question
Mark contributes 7% of his $120,000 salary to a Traditional 401(k). His employer, ABC Corp., matches 50% of his contributions up to 10% of his
Mark contributes 7% of his $120,000 salary to a Traditional 401(k). His employer, ABC Corp., matches 50% of his contributions up to 10% of his salary. His average tax rate is 14% and his marginal tax rate is 25%.
A. How much does Mark contribute to his 401(k)
B. How much does the company contribute to his 401(k)
C. How much would Mark save in taxes in the year of the contribution?
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Local Public Finance
Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer
1st Edition
3030674681, 978-3030674687
