Question

A 68-year old retiree has a pension savings of $51,000, a 401k of $58,000, and an IRA account of $68,000. Before 2008, he had 2% more cash in the pension, 12% more in the IRA, and −1% in the 401k. He wants to take out 2% from each account before he turns 72, which will cost him a penalty of an extra 1% from the pension, 2% from the 401k, and 6% from the IRA. What is the relevant information for the amount that the retiree will have in his pension if he doesn't take money out now?
A: The retiree had 2% more cash in the pension in 2008
B: The retiree has a pension savings of $51,000
C: The retiree has a 401k of $58,000
D: The retiree has an IRA account of $68,000

Answer 1

Answer:

B: The retiree has a pension savings of $51,000

Step-by-step explanation: