Answer:
a) The maximum Jenna's employer will allow for her contribution is $24,000.
b) The maximum contribution she could make is $22,000.
c) Her employer's maximum contribution amount is $8,640.
Step-by-step explanation:
a) What is the maximum Jenna's employer will allow for her contribution?
The maximum Jenna's employer will allow for her contribution = Jenna's annual salary * Maximum percentage allowed by her employer = $96,000 * 25% = $24,000
b) What is the maximum contribution she could make?
The maximum contribution she could make = The maximum allowable contribution to any 401K for the year in question = $22,000
c) What is her employer's maximum contribution amount?
Her employer's maximum contribution amount = Jenna's annual salary * 9% = $96,000 * 9% = $8,640
