McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 57

In 2011, Maggy (34 years old) is an employee of YBU Corp.YBU provides a 401(k) plan for all its employees.According to the terms of the plan, YBU contributes 50 cents for every dollar the employee contributes.The maximum employer contribution under the plan is 15 percent of the employee's salary (if allowed, YBU contributes until the employee has contributed 30 percent of her salary).
a.Maggy has worked for YBU corporation for 3 ½ years before deciding to leave.Maggy's annual salary during this time was for $45,000, $52,000, $55,000, and $60,000 (she only received half of her final year's salary).Assuming Maggy contributed 8 percent of her salary (including her 2011 salary) to her 401(k) account, what is Maggy's vested account balance when she leaves YBU (exclusive of account earnings) Assume YBU uses three-year cliff vesting.
b.Same question as a.except YBU uses six-year graded vesting.
c.{Planning} Maggy wants to maximize YBU's contribution to her 401(k) account in 2011.How much should Maggy contribute to her 401(k) account assuming her annual salary is $100,000 (she works for YBU for the entire year)
d.{Planning} Same question as c., except Maggy is 55 years old rather than 34 years old at the end of the year