Question

biancas employer matches 25% of her 401(k) contributions u to $1000 biancas salary is $50000 and last year she contributed $6000 to her 401(k) plan.what was her employers contribution to the 401(k)

Answer 1

Answer:

$1000

Step-by-step explanation:

Answer 2

We are told that the employer matches 25% of Bianca's contributions to her 401(k). We are also told that Bianca's salary is $50,000 a year, of which she contributed $6000 to her own 401 (k). Her salary is not necessary to solve this, simply knowing how much she put into her 401(k) is enough information.

We can solve for 25% of $6000.

$6000 x 0.25 = $1500.

The employer should contribute $1500 to her 401(k), however, the question also states that they will contribute 25% UP TO $1000. Since 25% of 6000 is greater than 1000, the employer's contribution to the 401(k) will be $1000.