Daniel Has Accepted a New Job and Is Reviewing the Retirement

question 1609

Essay

Daniel has accepted a new job and is reviewing the retirement plan information. He has a choice of participating in the company's conventional Sec. 401(k) plan or a Roth 401(k) plan. Explain the difference between the two plans in terms of employee contributions and retirement distributions from the plan.

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Definitions:

Trapezoid

In geometry, a four-sided figure with at least one pair of parallel sides.

Distal Part

The portion of a limb or structure that is farthest from the point of attachment or origin; opposite of proximal.

Ulna

A long bone in the forearm that runs parallel to the radius, forming the elbow joint at its larger end.

Olecranon Process

is the pointed bone at the tip of the elbow, part of the ulna, which forms the elbow joint together with the humerus.