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In 2019, Nina contributes 10 percent of her $100,000 annual salary to her 401(k) account. She expects to earn a 7 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina’s after-tax accumulation from her 2019 contributions to her 401(k) account? (Use Table 1, Table 2.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

a. Assume Nina’s marginal tax rate at retirement is 30 percent.

After tax proceeds from distribution$____

b. Assume Nina’s marginal tax rate at retirement is 20 percent.

After tax proceeds from distribution$____

c. Assume Nina’s marginal tax rate at retirement is 40 percent.

After tax proceeds from distribution$____

Answer 1

	a	b	c
Before tax contribution	10,000	10,000	10,000
Time future value factor (1.07^25)	5.42743	5.42743	5.42743
Future value of contribution	54,274	54,274	54,274
Tax %	30%	20%	40%
Less:Taxes payable on distribution	16,282	10,855	21,710
After tax proceeds from distribution	37,992	43,419	32,565