Find how much will have in retirement account

Assignment Help Financial Accounting

Reference no: EM132641048

Mr. Donald Heffernan, a 35 years old account manager At Wells Fargo has gross annual income after all deductibles of $85,000. Mrs. Heffernan quit her job at Walmart to take care of their twin kids, Luke and Christine. So Mr. Heffernan is the only income earner at his house hold.

Mr. Heffernan is filing income using the following "Married filing jointly" tax rate schedule.

Taxable income over Not Over Tax rate

$0 18,450 10%

18,451 74,900 15%

74,901 151,200 25%

151,201 230,450 28%

230,451 411,500 33%

411,501 464,850 35%

464,581 ....... 39.6%

Problem 1: Mr. Heffernan wants to save for his retirement. He is thinking of saving $1,250 a month in a 401K account that pays an annual rate of 3.5%. How much will he have in his retirement account when he turns 65?

Reference no: EM132641048

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