What is the maximum tax deferred amount

Assignment Help Financial Management

Reference no: EM131561625

What is the dollar cost average price over a 6 month period given the following information?

Annual Gross Salary = $50,000

Month 1, 2, 3 Annual Contribution Rate as a % of Gross Salary = 3.00%

Month 4, 5, 6 Annual Contribution Rate as a % of Gross Salary = 4.50%

* Monthly contributions are used to purchase a security based on the below prices.

Security Prices

Month Price

1 27.45

2 27.34

3 28.00

4 28.60

5 30.00

6 22.90

A. $27.38

B. $27.11

C. $10.42

D. $27.19

2. What is the maximum tax deferred amount that may be contributed to an employee's traditional 401K plan in 2016. In 2016, the employee is 55 years old and earned $52,000 in salary. His 401K plan allows maximum catch-up contributions. He has always contributed the maximum allowable amount each year.

A. $24,000

B. $53,000

C. $58,000

D. $59,000

Reference no: EM131561625

Questions Cloud

Would you agree to her request and why : You are Julia, a new accounts receivable clerk for a paper and office supply store. Would you agree to her request, and why

Describe a realistic job preview for the new hire : Describe a realistic job preview for the new hire and explore why it is important - Develop a training program for the job that you selected

Find the expression for the length : In analyzing a rectangular computer image, the area and width of the image vary with time such that the length is given by the expression.

Identify three factors of production : Identify three factors of production, and describe how their mobility is good or bad for U.S. trade.

What is the maximum tax deferred amount : What is the maximum tax deferred amount that may be contributed to an employee's traditional 401K plan in 2016.

Prepare the journal entry to record the issuance : On December 31, 2017, Sayers Nissan issued $3 million of 10-year, 10% debentures. Compute the proceeds from the issuance and prepare the journal entry to record

Calculate cost of the preferred stock : Cost of preferred stock Taylor Systems has just issued preferred stock. Calculate the cost of the preferred stock.

How much would you have to invest yearly to fully fund : How much would you have to invest yearly to fully fund the annuity in 50 years, again assuming a 6 percent monthly compounding rate?

Find the reciprocal of the given expression : In analyzing the displacement of a certain valve, the expression (x2 - 2x - 2)/(x4 + 4) is used.

User Account

All Pages