1. Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined...

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1. Alicia has been working for JMM Corp. for 32 years. Aliciaparticipates in JMM’s defined benefit plan. Under the plan, forevery year of service for JMM she is to receive 2 percent of theaverage salary of her three highest years of compensation from JMM.She retired on January 1, 2018. Before retirement, her annualsalary was $570,000, $600,000, and $630,000 for 2015, 2016, and2017. What is the maximum benefit Alicia can receive in 2018?
2.Brooklyn has been contributing to a traditional IRA for sevenyears (all deductible contributions) and has a total of $30,000 inthe account. In 2018, she is 39 years old and has decided that shewants to get a new car. She withdraws $20,000 from the IRA to helppay for the car. She is currently in the 24 percent marginal taxbracket. What amount of the withdrawal, after tax considerations,will Brooklyn have available to purchase the car?

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Answer No 1 Years of Service of Alicia in JMM Corp 32 years Average salary of three highest years of compensation 5700006000006300003 600000 Since Alicia has been working with JMM Corp for 32 years and average of highest salary of See Answer

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1. Alicia has been working for JMM Corp. for 32 years. Aliciaparticipates in JMM’s defined benefit plan. Under the plan, forevery year of service for JMM she is to receive 2 percent of theaverage salary of her three highest years of compensation from JMM.She retired on January 1, 2018. Before retirement, her annualsalary was $570,000, $600,000, and $630,000 for 2015, 2016, and2017. What is the maximum benefit Alicia can receive in 2018?2.Brooklyn has been contributing to a traditional IRA for sevenyears (all deductible contributions) and has a total of $30,000 inthe account. In 2018, she is 39 years old and has decided that shewants to get a new car. She withdraws $20,000 from the IRA to helppay for the car. She is currently in the 24 percent marginal taxbracket. What amount of the withdrawal, after tax considerations,will Brooklyn have available to purchase the car?