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Tax Consequences of a Defined Contribution Plan 3. In 2022, Sandra (53 years old) is an employee of a company which provides a 401(k) plan
Tax Consequences of a Defined Contribution Plan 3. In 2022, Sandra (53 years old) is an employee of a company which provides a 401(k) plan for all its employees. The company contributes two dollars for every dollar the employee contributes and will contribute a maximum of 8% of the employee's salary (if the employee contributes 4% of salary and contribution limitation has not been met yet). a. Sandra's salary is $100,000 and she wants to maximize the contributions to her 401(k) account while also maximizing the employer match portion. How much should Sandra contribute to her 401(k) account? (1 point) b. Assume instead that Sandra's salary is $600,000. How much should Sandra contribute to her 401( k) account? (1 point)
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