Reference no: EM132568364

Question - Isaiah has been working for CNN for three years. CNN offers Isaiah a 401(k) plan. At the end of the third year of working there, Isaiah leaves and begins working for MSNBC-which also offers a 401(k) plan.

When Isaiah leaves CNN, his 401(k)-account balance is $54,000, of which:

CNN's contribution = $30,000

Isaiah's contribution = $20,000

Interest earnings = $4,000.

a. Upon leaving CNN, how much of the 401(k)-account balance can Isaiah take with him at a minimum?

b. If CNN uses a five-year cliff vesting schedule, how much of the 401(k)-account balance can Isaiah take with him in total?

c. If CNN uses a graded 2-6 vesting rule, how much of the 401(k)-account balance can Isaiah take with him in total?