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Mickey is 40 years old and has his retirement savings in a 401(k). If he makes $55,000 annually, what is the maximum percentage of his income that he can contribute to his 401(k) plan per year? (The current maximum contribution limit is $16,500.)

Respuesta :

the answer will be 30%

Answer:

30%.

Step-by-step explanation:

We have been given that Mickey makes $55,000 annually and the current maximum contribution limit to 401(k) plan is $16,500. We are asked to find the maximum percentage Mickey can contribute of his 401(k) plan.

To find the maximum contribution percentage, we need to figure out $16,500 is what percent of $55,000.

[tex]\text{The maximum contribution percentage}=\frac{\$16,500}{\$55,000}\times 100[/tex]

[tex]\text{The maximum contribution percentage}=0.30\times 100[/tex]

[tex]\text{The maximum contribution percentage}=30\%[/tex]

Therefore, Mickey can contribute 30% of his annual income to his 401(k) plan at maximum.

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