In 2022, Nina contributes 13 percent of her $123,000 annual salary to her 401(k) account. She expects to earn a 4 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina's after-tax accumulation from her 2022 contributions to her 401(k) account? (Use Table 1, Table 2.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. a. Assume Nina's marginal tax rate at retirement is 30 percent. b. Assume Nina's marginal tax rate at retirement is 20 percent. c. Assume Nina's marginal tax rate at retirement is 40 percent.
In 2022, Nina contributes 13 percent of her $123,000 annual salary to her 401(k) account. She expects to earn a 4 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina's after-tax accumulation from her 2022 contributions to her 401(k) account? (Use Table 1, Table 2.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. a. Assume Nina's marginal tax rate at retirement is 30 percent. b. Assume Nina's marginal tax rate at retirement is 20 percent. c. Assume Nina's marginal tax rate at retirement is 40 percent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
M20.
Transcribed Image Text:In 2022, Nina contributes 13 percent of her
$123,000 annual salary to her 401(k) account.
She expects to earn a 4 percent before-tax rate
of return. Assuming she leaves this (and any
employer contributions) in the account until she
retires in 25 years, what is Nina's after-tax
accumulation from her 2022 contributions to her
401(k) account? (Use Table 1, Table 2.)
Note: Round your intermediate calculations and
final answers to the nearest whole dollar
amount.
a. Assume Nina's marginal tax rate at retirement
is 30 percent.
b. Assume Nina's marginal tax rate at retirement
is 20 percent.
c. Assume Nina's marginal tax rate at retirement
is 40 percent.
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