Matthew $(48at$ year$-$end$)$ develops cutting$-$edge technology for $SV$ Incorporated, located $in$ Silicon Valley. Matthew participates $inSV\text{'}s$ money purchase pension plan $(a$ defined contribution plan$)$ and $in$ his company's $401(k)$ plan. Under the money purchase pension plan, $SV$ contributes $15$ percent $ofan$ employee's salary $to$ a retirement account for the employee $upto$ the amount $limitedby$ the tax law. Because $it$ provides the money purchase pension plan, $SV$ does not contribute $to$ the employee's $401(k)$ plan. Matthew would like $to$ maximize his contribution $to$ his $401(k)$ account after $SV\text{'}s$ contribution $to$ the money purchase plan.

Problem $13-58$ Part $a(Algo)$

Assuming Matthew's annual salary $is$ $$385,000,$

Required:

$a-1.$ What amount will $SV$ contribute $to$ Matthew's money purchase plan?

$a-2.$ What can Matthew contribute $to$ his $401(k)$ account for the year