You just graduated and started your new job Your starting salary is $70,000 year Your employer's 401(k) plan states that your employer will contribute 1 of your salary to your 401(k) and the will match your contributions, $1 for $1, up to 5 of your salary Please answer the following questions How much ($) will your employer contribute to your 401(k) per year if you make contributions What is the minimum amount ($) that you must contribute per year to get the maximum match from your employer Assume that you make the minimum contribution to get the maximum match from your employer What is the total amount($) that will be contributed to your401(k) for the year, including all of the employer contributions and your contributions Assume that this annual total contribution is made for 45 years and your 401(k) earns an average annual return of 7 How much will you have in your account at the end of this time period Assume Beginning of Period Contributions After doing a budget, you realize that you can make a contribution of $5,000 per year to a Roth IRA, in addition to the total contributions to your 401(k) including your employer's total contributions Assuming the same annual rate of return and number of years to retirement as above, how much will you have in your accounts401(k) and Roth IRA when you retire Assume the Beginning of Period payments

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Posted on Jul 15, 2024

You just graduated and started your new job. Your starting salary is $70,000/year. Your employer's 401(k) plan states that your employer will contribute 1% of

You just graduated and started your new job. Your starting salary is $70,000/year.

Your employer's 401(k) plan states that your employer will contribute 1% of your salary to your 401(k) and the will match your contributions, $1-for $1, up to 5% of your salary. Please answer the following questions:

How much ($) will your employer contribute to your 401(k) per year if you make contributions

What is the minimum amount ($) that you must contribute per year to get the maximum match from your employer?

Assume that you make the minimum contribution to get the maximum match from your employer. What is the total amount($) that will be contributed to your401(k) for the year, including all of the employer contributions and your contributions?

Assume that this annual total contribution is made for 45 years and your 401(k) earns an average annual return of 7%. How much will you have in your account at the end of this time period? Assume Beginning of Period Contributions.

After doing a budget, you realize that you can make a contribution of $5,000

per year to a Roth IRA, in addition to the total contributions to your 401(k) - including your employer's total contributions. Assuming the same annual rate of return and number of years to retirement as above, how much will you have in your accounts401(k) and Roth IRA when you retire? Assume the Beginning of Period payments.