Jahwana works for a large corporation with a 401(k)retirement plan.The company matches dollar for dollar the first 5% of the employee's salary contributed to the 401(k).Jahwana currently earns $40,000 in gross salary and she currently contributes 15% of her salary into her 401(k).How much money in dollars is the total contribution to her account every year?

Question

Quizplus · Accepted Answer

Jahwana contributes 15% of her $40,000 salary, which is $6,000. The company matches the first 5% dollar for dollar, which is $2,000. Therefore, the total contribution is $6,000 (her contribution) + $2,000 (company match) = $8,000.

Jahwana Works for a Large Corporation with a 401(k)retirement Plan