Question

A marketing executive earns an annual salary of $78,300, and she contributes $6,500 per year to her 401(k) plan. If she has a required deduction for income taxes (federal, state, and local combined) of 27% of pretax income, how much is withheld in income taxes per year?

Answer 1

Explanation:

With the assumption being made that the 401-k deductions are pre-tax deductions your calculation is as follows:

78,300 - 6,500 = 71,800 (this is your new taxable value)

71,800 * 0.27 = 19,386 (This is the amount that will be withheld in income taxes per year.

Answer 2

With the assumption being made that the 401-k deductions are pre-tax deductions your calculation is as follows:78,300 - 6,500 = 71,800 (this is your new taxable value)71,800 * 0.27 = 19,386 (This is the amount that will be withheld in income taxes per year.Your answer is A.