Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Tyler and Megan have a combined income of [tex][tex]$105,000[/tex] per year. Neither Tyler's nor Megan's employers have a matching plan.

How much should they contribute to the [tex]$[/tex]401(k)$[/tex]?

[tex]\boxed{}[/tex]

Sagot :

GinnyAnswer
To determine how much Tyler and Megan should contribute to their 401(k) plan, follow these steps:

1. Identify the combined income:
- Tyler and Megan have a combined annual income of 105000.

2. Determine the contribution rate:
- We assume that they decide to contribute 6% of their combined income to their 401(k) plan.

3. Calculate the amount to contribute:
- To find out how much they should contribute, multiply their combined income by the contribution rate (6% or 0.06).

[tex]\[ \text{Contribution} = 105000 \times 0.06 \][/tex]

4. Perform the calculation:
- [tex]\(105000 \times 0.06 = 6300\)[/tex]

Therefore, Tyler and Megan should contribute 6300 to their 401(k) plan.
Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.