Robin is considering taking the 25% match up to 11% match offered by their employer's 401(k) plan. If they plan to save 3.0% of their $94,000 annual gross salary, how much will they receive in a match from their employer this year?"

Robin is considering taking the 25% match up to 11% match offered by their employer's 401(k) plan. If they plan to save 3.0% of their $94,000 annual gross salary, how much will they receive in a match from their employer this year?"

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Ora (43) and wants to know about saving for her superannuation when she plans to retire at age 60.…

A: The retirement plan refers to the arrangement of the funds for the time after retirement. The time…

Q: A civil engineer planning for her retirement places 11% of her salary each year into a…

A: First year retirement fund deposit (D1) = $180000 * 11% = $19800 Growth rate (g) = 2% n = 13 years r…

Q: Carlos has an opportunity to save $205 per month at an APR of 4.55% in a 401K plan through work. He…

A: Time Value of money is a concept in which a $1 today is worth more than $1 in future, this is…

Q: Tammy Faye requires a 12% before-tax return on her real estate investments. If she invests $78,000…

A: Given that:PV=$78,000Interest Rate = 12% = =0.01Monthly Expenses = $120n=5×12=60 months

Q: Mr. X is going to retire soon. His employer gives him two options; a. An annual pension of Rs.…

A: Annuity payments are the series of payments that an individual makes on a regular basis into an…

Q: "Mikayla's new employer offers a 401(k) plan that has a 50% match up to 7%. They would like to save…

A: A tax-advantaged retirement savings plan known as a 401(k) is one that many American companies…

Q: Magdalena, age 35, has $72,000 accumulated in savings. She projects she will save $23,000 a year…

A: The amount you can put back or invest each period, as well as the interest you earn on your savings,…

Q: Marthda and Louis Mitchell are a dual-career couple who just had their first child. Louis, age 30,…

A: Whole life insurance considers payment of premium amount regularly as written in the policy contract…

Q: additional amount of funds

A: The time value of money shows the amount which is more worthful now as compared to the money will…

Q: Amy Parker, a 22-year-old and newly hired marine biologist, has opened a 401(k) retirement plan…

A: The FV of an annuity refers to the accumulated worth of the cash flows assuming that they grow at a…

Q: Although Joe is interested in the defined benefit offered by UM, he would also like to consider…

A: Lump sum amount is calculated as the present value of annual defined benefit using following…

Q: How much would Barry have at retirement if he had started this plan at age 30?

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: . Calculate the present value of the $580,000 future cash benefit. Assuming that the retirement…

A: Present Value Present value is the concept that states an amount of money today is worth more than…

Q: 1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year…

A: Annual saving (P) = $8000 Period from 35th year to 65th year (n) = 30 Interest rate (r) = 7.00%

Q: In 2023, Maggy (34 years old) is an employee of YBU Corporation. YBU provides a 401(k) plan for all…

A: As per IRS rules 2022 , the individual contribution limit is $ 20,500 if…

Q: Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer…

A: Weekly contribution (C) = 75Weekly discount rate (r) = 0.00144 (i.e. 0.075 / 52)Weekly period of…

Q: Gail Trevino expects to receive a $500,000 cash benefit when she retires five years from today. Ms.…

A: This question relates to the application of time value of money. We will compute the present value…

Q: Steve is planning to retire at the beginning of 2022. He works for a company with a defined benefit…

A: In a defined benefit plan, there are certain limits sets by the IRS to ensure that the annual…

Q: life insurance to purchase us ue approach. He plans to retire at 67 and assumes his average annual…

A: The human life value is very important in insurance so that proper insurance cover is taken so that…

Q: Erin wants a monthly retirement income of $10,000. She will retire on her birthday at age 67 with a…

A: Retirement: It represents when an individual leaves the firm's workforce. The present value of the…

Q: Bernie Long wants to retire to California when she is 60 years of age. Bernie is now 40. She…

A: The present value means the value of the investment from a future date. It is the amount that is…

Q: When Should Michael Pay Housing Costs? On April 1 of next year, Michael is purchasing a $225,000…

A: The LTV ratio is calculated using the following formula: LTV =Principal amountMarket Value of the…

Q: Ana Maria's family would need $33,500 for annual living expenses if she should pass away. Her…

A: Given: Annual living expense = $35500 Earnings of husband = $15100 Additional yearly income = $12000…

Q: mily Smith just received a promotion at work that increased her annual salary to $42,000. She is…

A: Quantum and timing of cash flows emanating for different purposes and different instruments have…

Q: During 2020, a person receives Social Security at age 63 and is earning $23,000/year at a part-time…

A: Social security payments refers to the fixed form of amount or compensation that is paid on regular…

Q: Mark is choosing between two colleges. Graduates of college A expect to earn $60,000 upon graduation…

Q: Marleen, who is 37 years old, is an employee of Zcrypt, Inc. (Zcrypt). Zcrypt sponsors a SEP IRA and…

A: As par rules, An employer's contribution cannot exceed lower of the two values to the SEP IRA on…

Q: Maxwell has been offered a choice by his employer of $2,000 paid annually at the beginning of the…

A: We can use the PV of annuity due formula to determine the PV of all future annual payment. The…

Q: Megan is applying for a scholarship currently valued at $4,000 at the end of first year. If she is…

A: Data given: Value of scholarship at the end of first year= $4000 Rate of inflation=2%

Q: Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer…

A: Given in the question:Expenses paid for Day Care Center = $6,150Adjusted Gross Income = $50,600Year…

Q: Suppose Gretchen's health insurance has a $500 annual deductible. Gretchen is responsible for 20…

A: A copay (or copayment) is a one-time cost that you pay when you see your doctor or fill a…

Q: Assume you are 25 and earn $35,000 per year, never expect to receive a raise, and plan to retire at…

Q: Maria and Roberto Cruz's financial adviser told them they will need 80 percent of their…

A: In this question, we are required to determine the annual retirement income.

Q: at amoun haron hop e Value o hution

A: 1) We are given, Annual contribution = $10,000 Year = 30 Rate = 7% Future value = ?

Q: D’von works for a company that matches his 401(k) retirement contributions at a rate of “$0.50 per…

A: 401(K) is employer promoted retirement plan in which both employee and employer contribute in some…

Q: 1a. Shelly and Mark wanted to review their retirement preparation and make sure they are on track.…

A: "Hi, Thanks for the question. Since you asked multiple question, we will answer first question with…

Q: Your mother's employer offers a tax-deferred retirement plan (a 401-b plan, which was authorized by…

A: Future value is a sum of money invested today will become over time, at a rate of interest. FV =…

Q: 10 Given the following information/assumptions under a 401 (K) plan: −The employer matches by…

A: Retirement planning is very important and necessary for life after working life because you have no…

Q: Riley works for a company with a 401(k) plan. The company matches at $0.50 on the dollar the first…

A: Riley earns $90,000 and contributes 12% of her salary to her 401(k), so her annual contribution…

Q: u analysis was very helpful to Bozena. She has decided to participate in her company's 401(k) plan.…

A: Money that can be withdrawn depends on the amount one have accumulated in retirement and period of…

Q: Kathy has an account balance in her employer’s money purchase pension plan of $1,000. The plan has a…

Q: lex wants to provide funding in the event of his death for his daughter Ellie, age 8, to attend four…

A: There is a need for financial planning for future requirements and if done can produce good results…

Q: Gail Trevino expects to receive a $590,000 cash benefit when she retires eight years from today. Ms.…

A: Capital budgeting: It is a method of evaluating the projects which required huge investments and…

Question

"Robin is considering taking the 25% match up to 11% match offered by their employer's 401(k) plan. If they
plan to save 3.0% of their $94,000 annual gross salary, how much will they receive in a match from their
employer this year?"

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to 401(k) plan

VIEW

Step 2: Computation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Employee Retirement Income Security Act (ERISA)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Amy Parker, a 22-year-old and newly hired marine biologist, has opened a 401(k) retirement plan with her employer. Amy's contribution, plus that of her employer, amounts to $2,400 per year starting at age 23. Amy expects this amount to increase by 4% each year until she retires at the age of 57 (there will be 35 EOY payments). What is the compounded future value of Amy's 401(k) plan, in millions of $, if it earns an annual interest rate of 7% per year? (a) The compounded future value of Amy's 401(k) plan is $ million. (Round to three decimal places.) (b) What will be the compounded future value if the plan earns an annual interest rate of 4% per year (instead of 7% per year)? $ million. (Round to three decimal places.)
Laura and her husband Kevin have been married for 25 years and are planning to retire this year. Kevin's PIA is $13000. Laura's PIA is $3000. Assuming they are both at full retirement age, what is their maximum joint retirement benefit under Social Security? $16000 O $13000 $19500 O $26000
Lastly, Hector wants to invest in a certificate of deposit (CD) to purchase a boat that costs $28,500 when he retires. Leaf Investments offers a CD with 13% compounded semiannually. How much would Hector have to put in the CD today to gain $28,500 in 30 years?
Martha and Louis Mitchell are a dual-career couple who just had their first child. Louis, age 30, already has a group life insurance policy, but Martha's employer does not offer a life insurance benefit. A financial planner is recommending that the 27- year-old Martha buy a $250,000 whole life policy with an annual premium of $1,670 (the policy has an assumed rate of earnings of 5 percent a year). Help Martha evaluate this advice and decide on an appropriate course of action .
You just graduated and started your new job. Your starting salary is $50,000/year. Your employer's 401(k) plan states that your employer will contribute 3% of your salary to your 401(k) regardless of whether you make any contributions or not. They will also match your contributions, $1-for $1, up to 4% of your salary. Please answer the following questions: Assume that this annual total contribution is made for 35 years and your 401(k) earns an average annual return of 8%. How much will you have in your account at the end of this time period? Assume Beginning of Period Contributions. Round your answer to the nearest dollar - do NOT enter any cents or your answer will be marked as "incorrect". Also, do not add $ or commas in answer.
Marie wants to provide retirement income for her dependent parents for 35 years should she die. Marie earns $67,500 and feels that her parents could live on 65% of that amount. If the insurance funds could be invested at 5%, how much life insurance does she purchase using the desired income method? Group of answer choices $1,273,499 $1,450,087 $932,743 $877,500
Assume you are 25 and earn $29 comma 00029,000 per year, never expect to receive a raise, and plan to retire at age 55. If you invest 5 percent of your salary in a 401(k) plan returning 1111 percent annually, and the company provides a $0.50 per $1.00 match on your contributions up to 3 percent of salary, what is the estimated future value of your 401(k) account? Once you retire, how much can you withdraw monthly if you want to deplete your account over 3030 years?
Emily’s employer offers a pension plan that calculates the annual pension as the product of the final average salary, the number of years of service, and a 2% multiplier. Her employer uses a graded 5-year vesting formula as shown. After 4 years, Emily leaves her job. Her average salary was $65,000. How much pension will she receive? Years Employed Vesting Percentage 0 0% 1 0% 2 25% 3 50% 4 75% 5 100%
Bertha and Martha are twins, and just graduated from college. They plan to retire in 40 years. To that end, each has a 401-k tax-advantaged retirement account. Martha contributes $1,000 per month only for the first five years. Bertha does not contribute during the first 20 years but contributes $2,500 per month during the last 20 years. 14) How much would Martha’s account hold at retirement if she earned an annual rate of 11.5%? A) $3,347,918.85 B) $1,940,849.36 C) $2,999,789.12 *D) $4,425,537.6. First compute the FV of the 60-month annuity and then compound the lump-sum for the next 420 months. Use a periodic rate. 15) 15) How much would Bertha’s account hold at retirement if she also earned an annual rate of 11.5%? A) $3,350,918.25 *B) $2,312,752.65 C) $1,978,400.10 D) $2,711,542.16. Please show the work step by step through financial calculator.
Oscar is looking forward to retirement in a few years when he will have completed 20 years of pensionable service. Oscar's pension plan provides an annual pension benefit of 1.5% of average career earnings for each year of pensionable service. Using information from Oscar's pension statements, he estimates his career average annual earnings will be $50,000 when he retires with 20 years of service. Given these assumptions, calculate Oscar's annual pension benefit that he can expect to receive when he retires. $7,500 $10,000 $15,000 $20,000
Joey has been offered a job at a salary that would put him in the 24% marginal tax bracket. In addition to his salary, he would receive health insurance coverage. Another potential employer does not offer health insurance but has agreed to match the first offer on an after-tax and insurance basis. The cost of health insurance comparable to that provided by the other potential employer is $6,000 per year. How much more in salary must the second potential employer pay so that Joey's financial status will be the same under both offers? $6,000 $7,895 $7,440 $744 $1,440
Charlie belongs to a defined benefit pension plan that offers a pension of 2% of best earnings for each year of service, commencing at age 65. However, Charlie would like to retire at age 55, with 20 years of service and best average earnings of $68,000. His plan does allow early retirement, with a standard reduction of 4% for each year of early retirement. What will Charlie's pension entitlement be if he chooses to retire at age 55? 12 O a) $16,320 O b) $24,480 O c) $26,112 O d) $27,200