Larissa, who is age 45, has just resigned from her current job. She worked for Ace, which sponsors a cash balance plan and a standard 401(k) plan. Each of the plans uses the longest permitted vesting schedule and both plans are top heavy. Larissa has a balance of $30,000 in the cash balance plan, has deferred $20,000 into the 401(k) plan and has employer matching contributions of $12,000. If she has been employed for three years, but only participating in the plans for the last two years, how much does she keep if she leaves today? O $64,000. O $32,000. $20,000. O $54,800.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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Larissa, who is age 45, has just
resigned from her current job. She
worked for Ace, which sponsors a
cash balance plan and a standard
401(k) plan. Each of the plans uses the
longest permitted vesting schedule
and both plans are top heavy. Larissa
has a balance of $30,000 in the cash
balance plan, has deferred $20,000
into the 401(k) plan and has employer
matching contributions of $12,000. If
she has been employed for three
years, but only participating in the
plans for the last two years, how much
does
she keep if she leaves today?
O $64,000.
O $32,000.
$20,000.
O $54,800.
Transcribed Image Text:Larissa, who is age 45, has just resigned from her current job. She worked for Ace, which sponsors a cash balance plan and a standard 401(k) plan. Each of the plans uses the longest permitted vesting schedule and both plans are top heavy. Larissa has a balance of $30,000 in the cash balance plan, has deferred $20,000 into the 401(k) plan and has employer matching contributions of $12,000. If she has been employed for three years, but only participating in the plans for the last two years, how much does she keep if she leaves today? O $64,000. O $32,000. $20,000. O $54,800.
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