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Arturiano [62]
3 years ago
14

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The money in the 401(k) account is not taxed until withdrawn.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good reason to contribute to a 401 (k) retirement account is that, the money in the 401 (k) account is not taxed until withdrawn.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.

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You are a senior analyst in the marketing research department of a major steel producer. You have been requested to make a forec
blondinia [14]

Answer:

descriptive study.

Explanation:

  • Descriptive study is designed to explain the distribution of one or more variables in relation to any cause or other hypothesis.
  • Descriptive studies can be of many types, such as case reports, case series, cross-sectional studies and ecological studies. In the first three of these, data is collected on individuals, the last using data collected for the group.
  • Descriptive research is used to describe the characteristics of the study of a population or event.
3 0
3 years ago
Sally brings home $50,000 a year to help provide financial support to her family, comprised of her husband and two children. She
svp [43]

Answer:

$386,080

Explanation:

In order to find the Coverage of sally's investment in life insurance for 10year can be done by making 10-year table

Year     Cashflow    Discount factorI5%)    Present Value

                 $                       $                                  $

1           50,000              0.9524                        47,620

2           50,000              0.9070                       45,350

3           50,000              0.8638                        43,190

4           50,000              0.8337                        41,135

5           50,000              0.7835                        39,175

6           50,000              0.7462                        37,310

7           50,000              0.7107                         35,535

8           50,000              0.6768                        33,840

9           50,000              0.6446                        32,230

10          50,000              0.6139                        30,695

NPV =  Sum of all present values

NPV = $386,080

3 0
3 years ago
In 20X8, the following pledges were made: $35,000 in unrestricted contributions for use in 20X8; $20,000 in contributions restri
Triss [41]

Answer: $455,000

Explanation:

As the question states what will be the pledges receivable for 20x8 therefore, we will calculate all the pledges:

$35,000 + $20,000 + $400,000 = $455,000

Hence, the answer is $455,000 as we take into account all the pledges for the year 20x8.

8 0
3 years ago
Jan wants to plan for her daughter’s education. Her daughter, Rachel was born today and will go to college at age 18 for five ye
melisa1 [442]

Answer:

c

Explanation:

ur multiplication is involved

8 0
3 years ago
If interest rate parity holds and the annual Taiwan nominal interest rate is 7% and the US. annual nominal rate is 5% and real i
Sati [7]

Answer:

2% higher

Explanation:

Nominal rate = real rate + inflation

In the U.S:

5\%=2\%+inflation\\inflation = 3\%

In Taiwan:

7\%=2\%+inflation\\inflation = 5\%

The difference between inflations is:

I_T - I_{US} = 5\%-3\% = 2\%

Therefore, then inflation in Taiwan is about 2% higher than in the U.S.

7 0
3 years ago
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