Question: Problem 1 3 - 6 2 ( LO 1 3 - 2 ) ( Static ) Nitai ( age 4 0 ) contributes 1 0

Problem 13-62(LO 13-2)(Static)
Nitai (age 40) contributes 10 percent of his $100,000 annual salary to a Roth 401(k) account sponsored by his employer, AY Incorporated. AY Incorporated matches employee contributions dollar-for-dollar up to 10 percent of the employee's salary. However, AY matches by contributing to the employee's traditional 401(k) account because the employer contributions are not fully vested to the employee at the time of the contribution. Nital expects to earn a 7 percent before-tax rate of return.
Required:
Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 25 years and that he makes no additional contributions to either account. What are Nitai's after-tax proceeds from the Roth 401(k) and traditional 401 k
Problem 1 3 - 6 2 ( LO 1 3 - 2 ) ( Static ) Nitai

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