Question

9. Calista’s gross annual income is $39,036. She is paid monthly and has 6% deducted from her paychecks for her 403(b). If her employer matches her deduction up to 4%, how much is deposited into her retirement plan each payday?

Answer 1

Answer:

$203 approx

Explanation:

Gross Annual Income $39036.

Gross Monthly Income would be $\frac{39036}{12}$  i.e $3253 per month.

Out of this gross income, Calista deposits 6% i.e 6 % of $3253 = $195.18

The employer matches it with 4% of the above deduction i.e 4$ contributed for every 100 dollars of employee contribution.i.e 4% of $195.18

= $ 7.8072

Hence the Amount deposited in Calista's retirement plan each month would be: Employee's contribution + Employer's contribution

= $195.18 + $7.8072

= $ 202.9872  or $ 203 approx every month