Question

​ Reece is comparing retirement plans with prospective employers.​ ABC, Inc., offering a salary of $29,400, will match 75 percent of his contributions up to 10 percent of his​ salary, his maximum contribution. XYZ Company will match 100 percent of his contribution up to 6 percent of​ salary, but he can contribute up to 15 percent of his income. XYZ Company is offering a $27,800 salary. If Reece assumes that he will contribute the maximum amount allowed and keep these​ first-year retirement funds invested for 30 years with a return of 8 percent, how much would each account be​ worth? How can he use this information when choosing an​ employer?

Answer 1