All categories

3 years ago

What is a good reason to contribute to a 401(k) retirement account?

Business

1 answer:

kykrilka [37]3 years ago

4 0

Answer:

The money in the 401(k) account is not taxed until withdrawn.

Explanation:

A 401 (k) can be defined as a type of compensation (savings) plan that is being sponsored by a business firm or company (employer) to avail its employees the opportunity to contribute into. As a company-sponsored and defined-contribution retirement savings plan, it offers tax advantages to the employees because it reduces their income tax for the particular year while taxing their withdrawals.

A good reason to contribute to a 401 (k) retirement account is that, the money in the 401 (k) account is not taxed until withdrawn. Thus, the money contributed by an employee to a 401 (k) will maintain its tax-deferred status until he or she withdraws it.

For example, a 401 (k) would be the best retirement savings option for a 50-year old medical doctor whose employer offers a 5% contribution match.

You might be interested in

you are a manager of a large business enterprise. explain how you would address issues of equality respect and dignity in your b

irina [24]

<span>As a manager of a large business enterprise, I will address the issue of equality, respect and dignity in my business by employing the following tactics: [1] I will dutifully informed everyone in the company about the respect for co-worker policy of the company and the penalties for the offenders. [2] I will take the pain to always listen to the compliant any one has about a colleague and find ways of resolving the issue. All complain will be investigated with equal diligence. [3] I will regularly organize training seminars that aim at improving the mutual understanding among workers. [4] I will adopt a zero tolerance policy concerning workers who disrespect their colleagues. These techniques will help to enforce respect, dignity and equality among my workers.</span>

3 0

3 years ago

Suppose a ten firm industry has total sales of $35 million per year. The largest firm have sales of $10 million, the third lar

lyudmila [28]

Answer:

0.66

Explanation:

the fourfirm concentration ratio is the sum of the concentration ratio of the four largest firms in the industry.

The sales of the second largest firm = $35 million - ( $10 million + $4 million+ $2 million + $12 million ) = $7 million

concentration ratio of firm 1 = $10 million / $35 million = 0.29

concentration ratio of firm 2 = $7 million / $35 million = 0.2

concentration ratio of firm 3 = $4 million / $35 million = 0.11

concentration ratio of firm 4 = $2 million / $35 million = 0.06

Adding the ratios together = 0.66

3 0

3 years ago

Scenario: assume that you are a cashier and your manager requires that you immediately enter each sale when it occurs. recently,

soldier1979 [14.2K]

As a cashier it is your responsibility to follow the manager's instruction of entering each sale immediately after it occurs. Now, if the assistant manager told you otherwise, do not follow it because you might miss any sale if it will be entered later. Even if it is lunch hour traffic, this is also a crucial time to not make errors.

7 0

4 years ago

Read 2 more answers

Grouper Inc. is involved in a lawsuit at December 31, 2020. Prepare the December 31 entry assuming it is probable that Grouper w

goldenfox [79]

Answer:

Grouper Inc. is involved in a lawsuit at December 31, 2020

It is given that Grouper will be liable for $863,600 as a result of this suit. Therefore, the journal entry for this situation is as follows;

On December 31, 2020

Lawsuit loss A/c Dr. $863,600

To Lawsuit liability $863,600

(To record the lawsuit loss of the Grouper Inc.)

8 0

3 years ago

The normal balances of sales, sales discounts, and sales returns and allowances are ________. debit, credit, and credit, respect

Y_Kistochka [10]

<h3><u>Answer;</u></h3>

credit, debit, and debit, respectively

<h3><u>Explanation</u>;</h3>

Normal balance of sales; Credit

Normal balance of sales discount; Debit

Normal balance of sale returns and allowances; Debit

A normal balance is the expectation that a particular type of account will have either a debit or a credit balance.
The normal balance of sales is credit.
The sales returns and allowances account is subtracted from sales because these accounts have the opposite effect on net income. Therefore, sales returns and allowances is considered a contra‐revenue account, which normally has a debit balance.
The account Sales Discounts is referred to as a contra-revenue account. Therefore; its is debit balance.

5 0

4 years ago