Jose has an employer-sponsored 401 (k) plan that he contributes to, and his employer matches 25% of his contributions. Jose's salary is $50,000, and last year he contributed $6000 to his 401 (k) plan. What was the total amount that was contributed to his 401 (k) last year?

Question

Mathematics

Violet Griffin

29 August, 05:35

Jose has an employer-sponsored 401 (k) plan that he contributes to, and his employer matches 25% of his contributions. Jose's salary is $50,000, and last year he contributed $6000 to his 401 (k) plan. What was the total amount that was contributed to his 401 (k) last year?

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Answers (1)

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Kristian Krause · Answer 1

Given:

50,000 salary

6,000 401K plan contribution of the employee

25% of employee's contribution is the 401K plan contribution of the employer.

6,000 x 25% = 1,500 employer's contribution

6,000 + 1,500 = 7,500

The total amount that was contributed to Jose's 401K plan last year was 7,500.