Question
Please advise, and correct if my answer below is incorrect. Leslie participates in IBOs nonqualified deferred compensation plan. For 2020, she is deferring 10 percent
Please advise, and correct if my answer below is incorrect.
Leslie participates in IBOs nonqualified deferred compensation plan. For 2020, 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. Leslies marginal tax rate in 2020 is 32 percent. IBOs marginal tax rate is 21 percent (ignore payroll taxes in your analysis). (Use Table 1.) (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
a. Assuming Leslies marginal tax rate in 10 years (when she receives the distribution) is 33 percent, what is Leslies after-tax accumulation on the deferred compensation?
After-tax accumulation : 39540.00
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