Tyrone has an annual salary of $48,000.His employer offers a 401k plan;the company matches 25% of Tyrone's 401k contributions up to 5% of his salary.The maximum allowable contribution to any 401k is $16,500.To maximize his employer's contribution,Tyrone should deposit $200 a month into his account and his employer will deposit $50.

Question

Quizplus · Accepted Answer

Tyrone's employer will match 25% of his 401k contributions up to 5% of his salary, which is $2,400 (5% of $48,000). To maximize his employer's contribution, Tyrone should deposit $200 a month into his account, which is $2,400 per year. His employer will then deposit $50 a month into his account, which is $600 per year.

Tyrone Has an Annual Salary of $48,000