Nick has decided to contribute to a savings program. He can open a traditional 401(k) or...
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Nick has decided to contribute to a savings program. He can open a traditional 401(k) or a Roth 401(k) and has determined that he can afford a $14,400 contribution. Nick's salary is $106,500 per year, and he is in the 32% tax bracket. If Nick decides to go with a traditional 401(k), his contribution amount will be S And the amount offset via a reduced tax bill will be S If, instead, Nick decides to go with a Roth 401(k), his contribution amount will be S And the amount offset via a reduced tax bill will be $ Assuming all the same facts, suppose that Nick decides to open both 401(k) plans, splitting what he can afford to contribute equally between both plans. Under this scenario, Nick's contribution amount will be S And the amount offset via a reduced tax bill will be $ When Nick retires, which plan's monies will he be able to exclude from taxable income? Nick has decided to contribute to a savings program. He can open a traditional 401(k) or a Roth 401(k) and has determined that he can afford a $14,400 contribution. Nick's salary is $106,500 per year, and he is in the 32% tax bracket. If Nick decides to go with a traditional 401(k), his contribution amount will be S And the amount offset via a reduced tax bill will be S If, instead, Nick decides to go with a Roth 401(k), his contribution amount will be S And the amount offset via a reduced tax bill will be $ Assuming all the same facts, suppose that Nick decides to open both 401(k) plans, splitting what he can afford to contribute equally between both plans. Under this scenario, Nick's contribution amount will be S And the amount offset via a reduced tax bill will be $ When Nick retires, which plan's monies will he be able to exclude from taxable income?
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TRADITIONAL 401K Contribution Tax deductible Retirement Benefit Taxab... View the full answer
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
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