6 0 Required information ert 1 of 3 [The following information applies to the qu

Question

6 0 Required information ert 1 of 3 [The following information applies to the questions displayed below In 2017, Nina contributes 11 percent of her $110,000 annual salary to her 401k) account. She expects to earn a 6 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 30 years, what is Nina's after-tax accumulation from her 2017 contributions to her 401(k) account? (Use Table 1. Iable 2 Table 3. Iable 4) (Round your intermediate calculations and final answers to the nearest whole dollar amount. Round "Future value factor" to 4 decimal places.) oints eBook e. Assume Nina's marginal tax rate at retirement is 30 percent. Print Before-tax contribution Future value factor Future value of contribution Taxes payable on distribution After tax proceeds from distribution

Explanation / Answer

a

Assume ninna Marginal rate at retirement is 30 percent

$

Before tax contribution (110000*11%)

12100

Future value factor (1 x 1.0630)

5.7434

Future value of contribution

69495.14

Taxes Payable on distribution

-20848.5

After tax proceeds from distribution

48646.6

b

Assume ninna Marginal rate at retirement is 20 percent

Before tax contribution (110000*11%)

12100

Future value factor (1 x 1.0630)

5.7434

Future value of contribution

69495.14

Taxes Payable on distribution at 20%

-13899

After tax proceeds from distribution

55596.11

As per chegg guidelines when there more than one independent question is posted then only the first independent question will be answered.

a

Assume ninna Marginal rate at retirement is 30 percent

$

Before tax contribution (110000*11%)

12100

Future value factor (1 x 1.0630)

5.7434

Future value of contribution

69495.14

Taxes Payable on distribution

-20848.5

After tax proceeds from distribution

48646.6

b

Assume ninna Marginal rate at retirement is 20 percent

Before tax contribution (110000*11%)

12100

Future value factor (1 x 1.0630)

5.7434

Future value of contribution

69495.14

Taxes Payable on distribution at 20%

-13899

After tax proceeds from distribution

55596.11

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.