Required information
Problem 13-58 (LO 13-2) (Algo)
[The following information applies to the questions displayed below.]
Matthew (48 at year-end) develops cutting-edge technology for SV Incorporated, located in Silicon Valley. In 2023,
Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan.
Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for
the employee up to the amount limited by the tax law. Because it provides the money purchase pension plan, SV does not
contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV's
contribution to the money purchase plan.
Problem 13-58 Part d (Algo)
d. Assume Matthew's annual salary is $60,700 and that he is 54 years old at the end of 2023. What amount can Matthew contribute to
his 401(k) account in 2023?
Matthew's contribution to 401(k) account
