An employee contributes 10 percent of his $90,000 salary into the company's 401(k) plan. The company matches
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Question:
An employee contributes 10 percent of his $90,000 salary into the company's 401(k) plan. The company matches 40 percent of the first 6 percent of the employee's salary. The employee in the 31 percent tax bracket and the 401(k) plan excepts to yield an five percent (5%) rate of return.
Calculate the employee's return on this plan for one year.
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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