Posted by dEE on .
Sally Rogers, an employee of Advanced Ideas, Inc. has a gross salary of $45,000 per year. Her company will match employee 401K contributions up to 5% of the gross salary.
Due to personal financial constraints, Sally is only able to put 2% of her salary into her 401K during her first two years. However, after receiving a 3.5% raise at the end of her first year and a 4.0% raise at the end of her second year, she is able to up her 401K contribution to 5% at the beginning of her third year.