Question

If you contributed the full 6% of your $50,000 salary (the amount your company will match), what would be your monthly contribution to the 401(k)? What would be your employer’s contribution?

Answer 1

Monthly contribution $6,000

Employers contribution $3,000

Step-by-step explanation:

The employee contributions would be 6% of $50,000

=6/100 x $50,000

=0.06 x $50,000

=$3,000

If the employer matches the employee contribution, the employer will also contribute $3,000

The total employee monthly contribution would be $3000 + $3000= $6000

Employer contribution will $3000