Can I have the answer for a, b, d(future value factor) of theproblem below?
I put a, 75,469 b, 12,250 and d(future value factor) 1.063 andthey were all wrong.
Alex is 31 years old and has lived in Los Alamos, New Mexico,for the last four years where he works at the Los Alamos NationalLaboratory (LANL). LANL provides employees with a 401(k) plan andfor every $1 an employee contributes (up to 9 percent of theemployeeâs salary) LANL contributes $3 (a 3-to-1 match). The planprovides a six-year graded vesting schedule. Alex is now in hisfifth year working for LANL, and his current year salary is$150,000. Alexâs marginal tax rate is 28 percent in 2016.
Answer the following questions relating to Alexâs retirementsavings in 2016. (Use Exhibit 13-2, Exhibit 13-3) (Do notround intermediate calculations. Round "Future value factor" to 4decimal places. Round final answers to the nearest whole dollaramount.)
a. Assume that over the past four years, Alex hascontributed $45,000 to his 401(k) and his employer has contributed$115,000 to the plan. The plan has an account balance of $175,000.What is Alexâs vested account balance in his 401(k)?
b. Because Alex considers his employerâs matchingcontributions âfree money,â he wants to maximize the amount ofLANLâs contributions. What is the least amount Alex can contributeand still maximize LANLâs contribution?
c. In need of cash to build a home theater, Alexwithdrew $30,000 from his traditional 401(k) account. What amountof the withdrawal, after taxes and penalties, will Alex haveavailable to complete his project?
d. Assume that Alex contributes $10,000 to histraditional 401(k) account this year. Also assume that in 30 years,Alex retires (at age 61) and withdraws the $10,000 contributionmade this year and all the earnings generated by thecontribution. Also assume that his marginal tax rate at the time heretires is 25 percent. Ignore any prior or subsequent contributionsto his plan. If Alex earns a 6 percent annual before-tax rate ofreturn, what are his after-tax proceeds from the distribution?
Can I have the answer for a, b, d(future value factor) of theproblem below?
I put a, 75,469 b, 12,250 and d(future value factor) 1.063 andthey were all wrong.
Alex is 31 years old and has lived in Los Alamos, New Mexico,for the last four years where he works at the Los Alamos NationalLaboratory (LANL). LANL provides employees with a 401(k) plan andfor every $1 an employee contributes (up to 9 percent of theemployeeâs salary) LANL contributes $3 (a 3-to-1 match). The planprovides a six-year graded vesting schedule. Alex is now in hisfifth year working for LANL, and his current year salary is$150,000. Alexâs marginal tax rate is 28 percent in 2016.
Answer the following questions relating to Alexâs retirementsavings in 2016. (Use Exhibit 13-2, Exhibit 13-3) (Do notround intermediate calculations. Round "Future value factor" to 4decimal places. Round final answers to the nearest whole dollaramount.)
a. Assume that over the past four years, Alex hascontributed $45,000 to his 401(k) and his employer has contributed$115,000 to the plan. The plan has an account balance of $175,000.What is Alexâs vested account balance in his 401(k)?
b. Because Alex considers his employerâs matchingcontributions âfree money,â he wants to maximize the amount ofLANLâs contributions. What is the least amount Alex can contributeand still maximize LANLâs contribution?
c. In need of cash to build a home theater, Alexwithdrew $30,000 from his traditional 401(k) account. What amountof the withdrawal, after taxes and penalties, will Alex haveavailable to complete his project?
d. Assume that Alex contributes $10,000 to histraditional 401(k) account this year. Also assume that in 30 years,Alex retires (at age 61) and withdraws the $10,000 contributionmade this year and all the earnings generated by thecontribution. Also assume that his marginal tax rate at the time heretires is 25 percent. Ignore any prior or subsequent contributionsto his plan. If Alex earns a 6 percent annual before-tax rate ofreturn, what are his after-tax proceeds from the distribution?
