Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help!!! Complete the investment chart based on the facts given for each situation. Assume each person is following Dave's advice of investing 15% of

image text in transcribed

please help!!!

Complete the investment chart based on the facts given for each situation. Assume each person is following Dave's advice of investing 15% of their annual household income. Remember to follow the sequence of contributions recommended in the lesson. INVESTMENT ANNUAL SALARY COMPANY MATCH 401(K) ROTH IRA TOTAL ANNUAL INVESTMENT Joe $40,000 1:1 up to 5% Melissa $55,000 1:2 up to 6% Tyler & Megan $105,000 No Match Adrian $111.000 1:1: up to 3% David & Britney $150,000 No Match Brandon $35,000 2:1 up to 6% Chelsea $28,000 No Match > > Joe will take advantage of the company match (5% of salary) then put the rest in a Roth IRA. Melissa will fund the 401(k) up to the match and put the remainder in her Roth. Tyler & Megan can each fund a Roth, then put the remainder in the 401(k). With no match, fund the Roth first (based on 2011 contribution of $5,000 per individual). Adrian is not eligible to open a Roth IRA because he makes too much money. He will put his entire 15% into his 401(k). David and Britney are still within the guidelines for a married couple (based on 2011 contribution of $5,000 per individual). After maxing out the IRA, they will fund the 401(k). Brandon will fund his 401(k) up to the match, then put the remainder in his Roth. Chelsea will fund her Roth IRA. > >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions

Question

What is the use of bootstrap program?

Answered: 1 week ago