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please help! please help me!! Calculating 401(k) Matching Contributions Companies decide whether to institite matching contributions. Ones that offer malching contributions do so for mumerous
please help! please help me!! Calculating 401(k) Matching Contributions Companies decide whether to institite matching contributions. Ones that offer malching contributions do so for mumerous reasons, including recruitrnent and reteetion of the most qualified individuals. Nso, companies choose the formulas for making contributions and seting maximum limits. Here are trree common approsches for detarrining matching coniributions: contributes $2.000 to hor 401(K). Then, the company/s matching contribution equals $2,000 Fixed dollar match: The employer deposts $1 for every $1 the employee contribules up to a spocifed imit, for instance, 5 porcent of pary. One errpioyee contributes 3 percont of her $100,000 pay equaling $3,000; (3 percent x$100,000 ). The employer contribules the same amount, Another employee contributes 10 percent of his $100,000 pay equaling $10,000; (10 parcent $100,000). in this ease, the company deposits $5,000; (5 percent $100,000 ) because the plan speofles a 5 percent matching contribution madmum. Variable dollar match: The employer's contrbution decreases as an employeo's contribution introases, For example an employec might deposit $1 for every $1 on the first 3 percent of pay $100,000). The employer contributes a total of $4,500:[$1(3 percent $100,000))+($0,50(3 percont $100,000)]] Now, fers calailate the employer's matching contributions for three omployees, Anands, Shiys and Onkar using each method, Amande earns 534,300 annually and does not contribute anything to Under the full match approach, the employer's contribution for (Round your answers to the noarent hundredths place). a) Amanda: $000 b) Shiyur $11.02500 c) Onkar $1,728.00 (Round your antwers to the rearest hundredths plsce.) a) Amanda 50.00 b) Bhlyor 58.26875 o) Onkar 51,206.00 Under the freed dollar match appecouch (Fixed dollar malch. 75 cents per each $1 employee contributon), the employer's contribution for (Round your nnowem to the nearest hundrodihs place) a) Amandas 5 b) Shiyus $8,268.75 c) Onkar $1,30600 The Total Dollar Contribution to each employeeis 401 (c) account as follows: (Round your answen to the reareat hundredths place), d) Arandas $000 o) Shins: 510.20375 nonkan $300400 (Round your anween to the nearest hundredes place) a) Amandel b) Shivi: 1 e) Onkar $ The Tow Dotar Contribution b each employovis 401(0) acosunt as follows: (Round your antwen to the nearost hundrodths place) d) Amandin: e) shinus nOnkar
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