1. Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2019, Matthew participates in SVs money purchase pension plan (a defined contribution plan) and in his companys 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employees salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employees 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SVs contribution to the money purchase plan

Assuming Matthews annual salary is $420,000,

1. a- What amount will SV contribute to Matthews money purchase plan?

2. a- What can Matthew contribute to his 401(k) account in 2019?

What amount will SV contribute to Matthews money purchase plan?

SV contribution to money purchase plan

What can Matthew contribute to his 401(k) account in 2019?

Matthews Contribution to 401K account

Assuming Matthews annual salary is $270,000,

1. b- What amount will SV contribute to Matthews money purchase plan?
2. b- What can Matthew contribute to his 401(k) account in 2019?

What amount will SV contribute to Matthews money purchase plan?

SV contribution to money purchase plan

What can Matthew contribute to his 401(k) account in 2019?

Matthews Contribution to 401K account

Assuming Matthews annual salary is $65,000,

1. c-1. What amount will SV contribute to Matthews money purchase plan?
2. c-2. What amount can Matthew contribute to his 401(k) account in 2019?

What amount will SV contribute to Matthews money purchase plan?

SV contribution to money purchase plan

What can Matthew contribute to his 401(k) account in 2019?

Matthews Contribution to 401K account

d. Assume the same facts as part (c), except that Matthew is 54 years old at the end of 2019. What amount can Matthew contribute to his 401(k) account in 2019?

Matthew contribution to 401k account