In 2022, Nitai (age 40) contributes 8 percent of his $134,000 annual salary to a Roth 401(k) account sponsored by his employer, AY Incorporated. AY Incorporated matches employee contributions to the employee's traditional 401(k) account dollar-for-dollar up to 8 percent of the employee's salary. Nitai expects to earn a 5 percent before-tax rate of return.. Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 20 years and that he makes no additional contributions to either account. What are Nitai's after-tax proceeds from the Roth 401(k) and traditional 401(k) accounts after he receives the distributions, assuming his marginal tax rate at retirement is 30 percent? (Use Table 1, Table 2.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
In 2022, Nitai (age 40) contributes 8 percent of his $134,000 annual salary to a Roth 401(k) account sponsored by his employer, AY Incorporated. AY Incorporated matches employee contributions to the employee's traditional 401(k) account dollar-for-dollar up to 8 percent of the employee's salary. Nitai expects to earn a 5 percent before-tax rate of return.. Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 20 years and that he makes no additional contributions to either account. What are Nitai's after-tax proceeds from the Roth 401(k) and traditional 401(k) accounts after he receives the distributions, assuming his marginal tax rate at retirement is 30 percent? (Use Table 1, Table 2.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 45P
Related questions
Question
hsl.6
Transcribed Image Text:es
Problem 13-62 (LO 13-2) (Algo)
In 2022, Nitai (age 40) contributes 8 percent of his $134,000 annual salary to a Roth 401(k) account sponsored by his employer, AY
Incorporated. AY Incorporated matches employee contributions to the employee's traditional 401(k) account dollar-for-dollar up to 8
percent of the employee's salary. Nitai expects to earn a 5 percent before-tax rate of return..
Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 20 years and that he makes no
additional contributions to either account. What are Nitai's after-tax proceeds from the Roth 401(k) and traditional 401(k) accounts after
he receives the distributions, assuming his marginal tax rate at retirement is 30 percent? (Use Table 1, Table 2.)
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
After tax proceeds from distribution
Roth 401(k)
Traditional
401(k)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT