Erin is a chemical engineer and saves twelve percent of her salary in her 401(k) account with Axis Chemical.

Erin is a chemical engineer and saves twelve percent of her salary in her 401(k) account with Axis Chemical. Axis Chemical makes a 3% match to employees’ 401(k) contributions. Erin earned $80,000 in 2020. In addition to her 401(k) contribution in 2020, Erin also saved $2,400 in a Roth IRA. What is Erin’s savings rate in 2020?

Expert Solution

Saving rate = Total Saving / Earning

Total Saving = (12% of 80000) + (3% of 80000) + 2400

Total Saving = 9600 + 2400 + 2400

Total Saving = 14400

Saving Rate = 14400 / 80000 ==> 18%

jeff jeffy answered 2 years ago

In 2018, Nina contributes 11 percent of her $119,000 annual salary to her 401(k) account. She...

In 2018, Nina contributes 11 percent of her $119,000 annual salary to her 401(k) account. She expects to earn a 5 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina’s after-tax accumulation from her 2018 contributions to her 401(k) account? a.) Assume Nina’s marginal tax rate at retirement is 30 percent. b.) Assume Nina’s marginal tax rate at retirement is 20 percent. c.) Assume...

In 2019, Nina contributes 12 percent of her $125,000 annual salary to her 401(k) account. She...

In 2019, Nina contributes 12 percent of her $125,000 annual salary to her 401(k) account. She expects to earn a 5 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 20 years, what is Nina’s after-tax accumulation from her 2019 contributions to her 401(k) account? (Use Table 1, Table 2.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Problem 13-55 Part a a. Assume...

1. n 2017, Nina contributes 11 percent of her $126,000 annual salary to her 401(k) account....

1. n 2017, Nina contributes 11 percent of her $126,000 annual salary to her 401(k) account. She expects to earn a 10 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina’s after-tax accumulation from her 2017 contributions to her 401(k) account? (Use Table 1, Table 2, Table 3, Table 4.) (Round your intermediate calculations and final answers to the nearest whole dollar amount. Round...

An engineer will deposit 15% of her salary each year into a retirement fund. If her...

An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is $80,000 and she expects that it will increase by 5% each year, what will be the present worth of the fund after 35 years if it earns 5% per year? a. $1.3 million b. $3.4 million c. $2.2 million d. $4.5 million

Suppose you have just graduated Harvard and accepted a job with a $100,000 salary. Your 401(K)...

Suppose you have just graduated Harvard and accepted a job with a $100,000 salary. Your 401(K) will be maxed at 5% employee contribution and 1-1 employer match. You will work for exactly the next 45 years (for simplicity assume your salary is unchanged). At your 5 year review you will receive a one-time $20,000 bonus which you will deposit in your retirement plan. You will live exactly 25 years after you retire. You plan to leave $200,000 to Harvard to...

Consider that an average Supposistan consumer saves 25 percent of his or her disposable income. a) ...

Consider that an average Supposistan consumer saves 25 percent of his or her disposable income. a) Write down the consumption function for Supposistan. b) Write down the condition for the demand-side (short-run) equilibrium for Suppsosistan. c) Obtain the multiplier for this economy. d) Calculate the equilibrium level of income in the short-run if the planned investment, government spending and net exports amount to 5,000 and net tax (taxes-transfers) is 1,200. e) Explain what happens if Y is actually realized at...

Janet saves $3,000 a year at an interest rate of 4.2 percent. What will her savings...

Janet saves $3,000 a year at an interest rate of 4.2 percent. What will her savings be worth at the end of 35 years? A. $229,317.82 B. $230,702.57 C. $230,040.06 D. $234,868.92 E. $236,063.66

Which of the following are benefits of converting traditional 401(k) balances to a Roth account within...

Which of the following are benefits of converting traditional 401(k) balances to a Roth account within a qualified plan through an in-plan Roth rollover? i. The conversion may result in a reduction in income tax in future years. ii. The conversion will result in increasing after-tax deferred assets and reducing the gross estate. iii. The conversion will eliminate the need for minimum distributions during the life of the participant. iandii ii and iii i and iii i, ii and iii

3. You happen to have $2,000 in a bank account, $12,800 in a 401(k) plan at...

3. You happen to have $2,000 in a bank account, $12,800 in a 401(k) plan at work, a fully owned car with a current value of $8,000, and a house that you purchased for $250,000 that has a current market value of $378,000. The current balance of your home mortgage is $121,000, you have one credit card with a $5,000 balance, and a school loan with a balance of $67,000. What is your current net worth?

9) Eriko earns $45,755 per year. She contributes 8% of her income to her 401(k) plan...

9) Eriko earns $45,755 per year. She contributes 8% of her income to her 401(k) plan at work. In her tax bracket, she would pay 37% of her income in state and federal income taxes. A) How much is she saving this year on her taxes by making these 401(k) plan contributions? B) Suppose that instead of contributing to her 401(k) plan, she decides instead to deposit the same amount of money to a Roth IRA. What would her tax...

Question