Erica works for a company with a 401(k)plan.The company matches at $0.50 on the dollar the first 6% of the employee's salary contributed to the 401(k).If Erica earns $90,000 and contributes 12% of her salary,how much will the employer match be in dollars for the year?

Question

Quizplus · Accepted Answer

Erica earns $90,000 a year and contributes 12% of her salary, which is $10,800 per year. The company matches at 50 cents on the dollar for the first 6% of the employee's salary, which in Erica's case is $5,400. Therefore, the employer match will be $5,400 x 0.5 = $2,700.

So, the correct answer is B, $2,700.

Erica Works for a Company with a 401(k)plan