Question

QUESTION 4 Linda participates in a matching 401(k) plan and earns $100,000. The company matches $0.50 per $1 she contributes up to five percent of co mpensation. Calculate the amount of the employer match for the following contributions from Linda: (enter your answer with numbers only, no commas, dollar signs, dashes, etc) If Linda contributes $3,000, her employer will contribute If Linda contributes $5,000, her employer will contribute If Linda contributes $15,500, her employer will contribute

Answer 1

Answer:

Given

Company Contribution =$0.50 per $1 contribution from Linda

maximum contribution =5% of Compensation =5%*100000=$5000 Eq 1

If Linda Contribute $3000 then company contribution =Minimum of ( 0.5*3000,5000)=$1500

If Linda Contribute $5000 then company contribution =Minimum of ( 0.5*5000,5000)=$2500

If Linda Contribute $15500 then company contribution = Minimum of ( 0.5*15500,5000) =$5000