Problem 13-62 (LO 13-2) (Static)In 2023, Nital (age 40) contributes 10 percent of his $100,000 annual salary to a Roth 401(k) account sponsored by his employer, AYIncorporated. 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 theemployee at the time of the contribution. Nital 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 noadditional contributions to either account. What are Nitai's after-tax proceeds from the Roth 401(k) and traditional 401(k) accounts afterhe 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.esRoth 401(k)Traditional401(k)After tax proceeds from distribution

Step 1: Calculate Nital's annual contributions.His contribution: 10% * $100,000 = $10,000AY…

Answered: Problem 13-62 (LO 13-2) (Static) In…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Example 4-1 Carl Jamison, an employee for the Scharman School, belongs to a tax-deferred retirement plan to which he contributes 3 percent of his pay which is matched by the school. His biweekly pay is $2,500. Because of the deferral (3% × $2,500 = $75), $2,425 is subject to federal income tax withholding. George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,120. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Clausen: Round your answer to the nearest cent. a. What is the maximum that he can contribute into this retirement fund? $ b. What would be the company's contribution? $ Note: For items c. & d. below, round interim amounts to two decimal places. Use these values in subsequent computations then round final answer to two decimal places. c. What would be his weekly take-home pay if he contributes the maximum allowed retirement contribution (married, 2 allowances,…
Individual Retirement Accounts (LO 5.3) Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. If an amount is zero, enter "0". a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2018 and they had no other income, what is the maximum amount of their deductible contributions to a traditional IRA for 2018? Phil $ Linda $ b. Assuming Phil's wages were $53,000 and Linda's wages were $70,000 for 2018 and they had no other income, what is the maximum amount of their deductible contributions to a traditional IRA for 2018? Phil $ Linda $
3. An employee works 51 hours (51-40 were overtime hours) during a workweek in December of 2021. He earns $10.000/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has eamed $144,100 during the year. He has requested that his employer withhold 9% of gross pay, which is to be contributed to a 401(k) plan. Taxabin income for federal income tax withholding S 3,213.44 X Taxable income for social security tax-$ 0.00 Taxable income for medicare tax-$ 3,531.25 PREVIOUS NEXT SUBMIT ASSIGNMENT
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(18) Mary Matthews made $1,150 during a biweekly pay period only social security (fully taxable) and federal income taxes attach to her pay. Matthews contributes $100 each biweekly pay to her company's 401k. Determine Matthews take home pay if she is married filing jointly. (Use Wage Bracket Method) Round your answer to two decimal place.
4
Ma1 Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2020, Matthew participates in SV’s money purchase pension plan (a defined contribution plan) and in his company’s 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee’s salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee’s 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV’s contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.) d. Assume Matthew's annual salary is $72,500 and that he is 54 years old at the end of 2020. What amount can Matthew contribute to his 401(k) account in 2020?
None
Problem 9-33 (LO. 6) Shyam is a participant in a SIMPLE § 401(k) plan. He elects to contribute 4% of his $40,000 compensation to the account, and his employer contributes 3%. If an amount is zero, enter "0". Shyam has elected to contribute $ 1,600 to his SIMPLE § 401(k) plan. His employer will contribute $ 1,200 . Of these amounts, $ will not vest immediately.
Required information [The following information applies to the questions displayed below.] Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2021, Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV's contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.) Assuming Matthew's annual salary is $71,000, c-1. What amount will SV contribute to Matthew's money purchase plan? c-2. What amount can Matthew contribute to his 401(k) account in 2021? Complete this question by entering your…
Required information Problem 13-85 (LO 13-5) (Algo) [The following information applies to the questions displayed below.] Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2022). In 2022, her net Schedule C income was $294,000. This was her only source of income. This year, Rita is considering setting up a retirement plan. What is the maximum amount Rita may contribute to the self-employed plan in each of the following situations? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Problem 13-85 Part a (Algo) a. She sets up a SEP IRA. Maximum contribution
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