In 2017, Nina contributes 10 percent of her $127000 annual salary to her 401(k)

Question

In 2017, Nina contributes 10 percent of her $127000 annual salary to her 401(k) account. She expects to earn a 7 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 20 years, what is Nina's after-tax accumulation from her 2017 contributions to her 401(k) account? (Use Table 1. Table 2. Table 3, Table 4.) (Round your intermediate calculations and final answers to the nearest whole dollar amount. Round "Future value factor" to 4 decimal places.) c. Assume Nina's marginal tax rate at retirement is 40 percent. Before-tax contribution Future value factor Future value of contribution Taxes payable on distribution After tax proceeds from distribution

Explanation / Answer

Particulars Amount Amount Before-tax contribution 12,700.00 Future value factor 3.8697 Future value of contribution 49,145.19 Taxes payable on contribution 19,658.08 After tax proceeds 29,487.11

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---