Required information

Problem $13-58($LO $13-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Matthew $(48$ at year$-$end$)$ develops cutting$-$edge technology for SV Incorporated, located in Silicon Valley. In $2023,$

Matthew participates in SV$\text{'}$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 of an employee's salary to a retirement account for

the employee up to the amount limited by 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 $$393,00,$

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 in $2023?$

Salary is $393,000$