1. Joe has been working for Company A for a total of four years. Company A offers Joe a 401(k) plan. At the end of the fourth year of working at Company A, Joe leaves and begins working for another employer – Company B. Company B also offers a 401(k) plan.

When Joe leaves Company A, his 401(k)-account balance is $54,000, of which:

• Company A’s contribution = $30,000
• Joe’s contribution = $20,000
• Interest earnings = $4,000.

1. Upon leaving Company A, how much of the 401(k)-account balance can Joe take with him at a minimum? (3 points)

2. If Company A uses a three-year cliff vesting schedule, how much of the 401(k)-account balance can Joe take with him in total? (2 points)

3. If Company A uses a graded 2-6 vesting rule, how much of the 401(k)-account balance can Joe take with him in total? (3 points)