Effective after-tax cost of 401(k) contribution Jared Nguyen is an operations manager for a large manufacturer. He earned $71,000 in 2019 and plans to contribute the maximum allowed to the firm's 401(k) plan. Assuming that Jared is in the 32 percent tax bracket, calculate his taxable income and the amount of his tax savings from contributing to the firm's 401(k) plan. Assume an individual employee can put as much as $19,000 into a tax-deferred 401(k) plan. Assume a standard deduction of $12,200 and no personal exemption. If necessary, round the answers to the nearest dollar. $ Taxable income Amount of his tax savings from contributing to the firm's 401(k) plan How much did it actually cost Jared on an after-tax basis to make this retirement plan contribution? If necessary, round the answer to the nearest dollar. $
Effective after-tax cost of 401(k) contribution Jared Nguyen is an operations manager for a large manufacturer. He earned $71,000 in 2019 and plans to contribute the maximum allowed to the firm's 401(k) plan. Assuming that Jared is in the 32 percent tax bracket, calculate his taxable income and the amount of his tax savings from contributing to the firm's 401(k) plan. Assume an individual employee can put as much as $19,000 into a tax-deferred 401(k) plan. Assume a standard deduction of $12,200 and no personal exemption. If necessary, round the answers to the nearest dollar. $ Taxable income Amount of his tax savings from contributing to the firm's 401(k) plan How much did it actually cost Jared on an after-tax basis to make this retirement plan contribution? If necessary, round the answer to the nearest dollar. $
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 7FPE
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Transcribed Image Text:Effective after-tax cost of 401(k) contribution
Jared Nguyen is an operations manager for a large manufacturer. He earned $71,000 in 2019 and plans to contribute the maximum allowed to the firm's
401(k) plan. Assuming that Jared is in the 32 percent tax bracket, calculate his taxable income and the amount of his tax savings from contributing to the
firm's 401(k) plan. Assume an individual employee can put as much as $19,000 into a tax-deferred 401(k) plan. Assume a standard deduction of $12,200
and no personal exemption. If necessary, round the answers to the nearest dollar.
Taxable income
Amount of his tax savings from contributing to the firm's 401(k) plan
How much did it actually cost Jared on an after-tax basis to make this retirement plan contribution? If necessary, round the answer to the nearest dollar.
$
$
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