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Karo-lina-s [1.5K]
3 years ago
10

1. Jenna makes $96,000 per year working for an online e-magazine. Her company offers a 401K retirement plan in which they will m

atch 45% of her contributions
to the 401K up to 9% of her salary. The company will only allow employees to make contributions to the 401K to a maximum of 25% of their salary. For the year
in question, the maximum allowable contribution to any 401K is $22,000 since she is over the age of 55.
a) What is the maximum Jenna's employer will allow for her contribution?
b) What is the maximum contribution she could make?
c) What is her employer's maximum contribution amount?
Mathematics
1 answer:
Nikolay [14]3 years ago
3 0

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

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