Your company sponsors a 401(k)plan into which you deposit 8 percent of your $95,000 annual income. Your company matches 65 percent of the first 10 percent of your earnings. You expect the fund to yield 9 percent next year. If you are currently in the 30 percent tax bracket,what is your one-year return?

Question

Quizplus · Accepted Answer

The Answer of Your company sponsors a 401(k)plan into which you deposit 8 percent of your $95,000 annual income. Your company matches 65 percent of the first 10 percent of your earnings. You expect the fund to yield 9 percent next year. If you are currently in the 30 percent tax bracket,what is your one-year return?

Your Company Sponsors a 401(k)plan into Which You Deposit 8