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Differentiate among the types of basic and supplemental employer-sponsored pension plans.

After-tax cost of 401(k) contribution. Ramon Flores is an operations manager for a large manufacturer. He earned $68,500 in 2016 and plans to contribute the maximum allowed to the firm’s 401(k) plan. Assuming that Ramon is in the 25 percent tax bracket, calculate his taxable income and the amount of his tax savings. How much did it actually cost Ramon on an after-tax basis to make this retirement plan contribution?

Financial Management, Finance

  • Category:- Financial Management
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