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CTP · Question #273
CTP Question #273: Real Exam Question with Answer & Explanation
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Question
- (Topic 3) An employee earning $80,000 per year decides to begin contributing to his company's 401(k) plan effective January 1st. Assuming he is in the 25% tax bracket, contributes 15% of his pay into the plan each month and receives a company match of $0.50 for every dollar he contributes, what is his taxable compensation that year?
Options
- A$51,000
- B$68,000
- C$74,000
- D$80,000
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