Alex is 31 years old and has lived in Los Alamos, New Mexico, for the last four years where he works at the Los Alamos National Laboratory (LANL). LANL provides employees with a 401(k) plan and for every $1 an employee contributes (up to 9 percent of the employee's salary) LANL contributes $3 (a 3 to 1 match). The plan provides a six-year graded vesting schedule. Alex is now in his fifth year working for LANL, and his current year salary is $150,000. Alex's marginal tax rate is 28 percent in 2014.
Answer the following questions relating to Alex's retirement savings in 2014.(Do not round intermediate calculations. Round "Future value factor" to 4 decimal places. Round final answers to the nearest whole dollar amount.)
a. Assume that over the past four years, Alex has contributed $45,000 to his 401(k) and his employer has contributed $115,000 to the plan. The plan has an account balance of $175,000. What is Alex's vested account balance in his 401(k)?
Vested Account balance?
b. Because Alex considers his employer's matching contributions "free money," he wants to maximize the amount of LANL's contributions. What is the least amount Alex can contribute and still maximize LANL's contribution?
Least amount contributed?
c. In need of cash to build a home theater, Alex withdrew $30,000 from his traditional 401(k) account. What amount of the withdrawal, after taxes and penalties, will Alex have available to complete his project?
After tax proceed?