In 2020, an employee has annual gross salary of $86,000, annual taxable income of $43,000 (before retirement
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In 2020, an employee has annual gross salary of $86,000, annual taxable income of $43,000 (before retirement contributions) and a flat income tax rate of 23%. He makes an annual tax deferred contribution of 3% to his traditional 401K. The employer matches 50% up to 1% of annual gross salary. How much will this employee have saved in 2020? Include all 2020 401K contributions and tax savings from 2020 401K contributions. Exclude investment earnings.
a. $4,463
b. $4,033
c. $3,440
d. $2,322
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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