90.2K

Verified Solution

Link Copied!

nowebhhect html Comprehensive Problems Alex Is 31 years old and has lived in Los Alamos, New Mexico, for the last four years where he works at the Laboratory (LANLJ LANL provides employees with a 40100 plan and for every si an employee contributes (up to 9 percent of the employee's salary) LANL year working for LANL and his current year salary is $170,000. Alex's marginal tax rate is 24 percent in 2018. contributes $3 (a 3-to-1 match). The plan provides a ste-year graded vesting schedule. Alex is now in his fith Answer the following questions relating to Alex's retrement savings in 2018. (Use Exhilbit 13-2. Exhibit 13:3) Required: a. Assume that over the past four years, Alex has contributed $45.000 to his 401(k) and his employer has contributed $115,000 to the b. Because Alex considers his employer's matching contributions free money" he wants to maximize the amount of LANL's c. In need of cash to build a home theater, Alex withdrew S30000 from his traditional 4000 account what amount ofthe widowa, d. Assume that Alex contributes $10.000 to his traditional 401k) account this year Aiso assume that in 30 years, Alex retres (at age plan. The plan has an account balance of $175.000 What is Alex's vested account balance in his 401kj? contributions. What Is the least amount Alex can contribute and still maximize LANL's contribution? after taxes and penalties, will Alex have available to complete his project? 61) and withdraws the $10.000 contribution made this year and all the earnings generated by the contribution Also assume that his marginal tax rate at the time he retres is 24 percent. t Ignore any prior or subsequent contributions to his plan If Alex earns a 6 cent annual before-tax rate of return, what are his after-tax proceeds from the distribution? e. Assume that Alex is 74 years old at the end of the year, retired, and that his margina/ tax rate is 24 percent His account baiance in his traditional 4010k) was $1,250.000 at the end of last year What is the minimum distribution Alex must receve from his 40 account for this year? if Alex amount wil he be able to keep after taxes and penalties (if ony)? recelves a $43.000 distribution from his 401k) account (his only distribution during the year, what Complete this question by entering your answers in the tabs below. Req A to CAReq D Assume that Alex is 74 years old at the end of the yean, retired, and that his marginal tax rate is 24 parcent. His accoun t for this vear? IFAlex recelves a $43.000 distribution from his 401(k) account (his only distrbuto alance in his traditional401) was $1 250,000 at the end of last yean what is the minimum distribution Alex must

Answer & Explanation Solved by verified expert

See Answer