You are you are 21 years old and working in the marketing department of a medium-sized Corporation you are earning an annual salary of 40000 paid every two weeks your employer provides a 401k plan and matches employee contributions by 50% up to maximum of 3% of your annual salary you are in a 25% marginal tax rate.

The the maximum dollar amount your employer will contribute to your 401k this year is what?

120,000

100

200

1,200?

Assume that you contribute 6% of your gross income to your 401k account how much will you contribute annually and per pay to your retirement account?

2400 and 400?

2400 and 92?

400 and 120?

2400 and 200?

120,000 and 100?

Given your giving your employer's contribution matching program a total of 1) ? will be deposited into a retirement account each pay. The actual state tax savings for the employees from their portion of the contributions will be (2) ? income tax per year (round all dollar amounts to the nearest whole dollar)

1-a. $138 b. $3312 c. 3588 d. 3600

2-a. $460 b.598 c. 552 d. 1794?