Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2023, nitai (age 40) contributes 10 percent of

In 2023, Nitai (age 40) contributes 10 percent of his $100,000 annual salary to a...

50.1K

Verified Solution

Question

Accounting

image
image
In 2023, 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. Nitai expects to earn a 7 percent before-tax rate of return. 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) accounts after he receives the distributions, assuming his marginal tax rate at retirement is 30 percent? (Use Table 1. Table 2.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Future Valoe of 51

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Mrs. Jackson is a history teacher. To choose two students at random, she decides to...

Algebra
Q

Let R(x) = ( 2x^2 − 8x + 6 ) / (x^2 + 6x +...

Basic Math
Q

How does each molecule of NADH generate 2.5 ATPs after electron transport and oxidative phosphorylation? Why does...

Biology
Q

Suppose that W1 and W2 are subspaces of V and dimW1

Advance Math
Q

In the network shown below potential difference across PC is 20 22 wwww 5 V...

Physics
Q

Question 4 of 14 Step 1 of 1 Suppose that a university has 34 scholarships...

Basic Math
Q

Question 1 2 pts For an equity method security, when cash dividends are received, dividend...

Accounting
Q

Alyeska Services Company, a division of a major oil company, provides various services to the...

Accounting
Q

The Statement of Owners Equity Selected account balances from the BCooper company at 12/31/20 are...

Accounting
Q

xercise Three: On December 31,20XX, the trail balance of Jordan Restaurant shows the following UNADUSTED...

Accounting
Q

Current Attempt in Progress Edward Company reported the following costs and expenses in July: Factory...

Accounting
Q

O An amount equal to or greater than $189.43 but less than $241.70 An amount...

Finance