98% Tue 9:31 PM Share Comment PowerPoint File Edit View insert Format Arrange Tools Slide Show Window Help AutoSave GF BUBU HBN Ch. 10 - 4010) Home Insert Draw Design Transition Animations Slide Show Review View Picture Format Telme w Color Correction Ar transparency Quick Send Selection Reader AR Align Background Electa Test Forward Backward Pane OS 4 ] Height 28 A7 Crep with 15.25" Format Pand Animas Background Calculating 4011 Matching Contributions Companies decide whether to institute matching contributions. Ones that after matching contributions do so for numerous reasons including recrutment and retention of the most qualified indviduals. Also companies choose the formulas for making cartsbutions and setting maximum ints. Here are three common approaches for determining matching contributions Full Match: The employer Uly matches an employee's contribution to the 401k plan account up to an amount set by low For illustrate purposes an employee caming 550000 annually contributes $200 to her 40. Then the company's matching contribution equals 2000 Find dollar match The employer deposts for every S1 the employee contributes up to a specified imit, for instance, 5 percent of pay One employee contributes 1 percent of her $100000 pay equating 53000 percent x $100000) The employer cortbutes the same anourt Another employee contibutes 10 percent of his $700000 payquaing S10000 (10 percent $100000) in this case the company deposits $5000 5 percent x $100000) because the plan species a 5 percent matching contribution mainn Variable dollar match: The employer's contrbution decreases as an employee's contribution increases. For example an employer might deposit $t for every for the first 3 percent of pay contributed by the employee and 50 cents per dolar on the next percent of pay An employee who earns $100000 annual cortibutes 6 percent to the 401k plan aing 58000 15 percent $100.000). The employer contributes a total of 54500151 x percent x $100000+ 50 50 x 3 percent X 51000007 Now let's calculate the employer's matching contributions for three employees Amanda Shiyu, and Onlar using each metod Amanda cans 532.500 annually and does not contribute anything to the 1kplan Shy earns $131250 mually and contributes 7 percent of pay to the 401k plan Orlar as 584 300 annually and contributest percent of pay Under the fol match approach the employer's contribution for Round your answers to the nearest hundreds place) 2) Ananda Shy Onkar The Total Dollar Contribution to each employee's 40 account as follows di Amanda: Onkar SE C Slide tell English (United States dy