Kaysia participates in a SIMPLE plan provided by her employer. In 2011, she contributes 6% of her $40,000 salary, and her employer contributes 3% to the plan. What amount of the contributions will be vested in her account at the end of 2011?
0
1200
2400
3600
To determine the vested amount in Kaysia's account at the end of 2011, we need to calculate the total contribution made by both Kaysia and her employer.
Kaysia contributes 6% of her $40,000 salary, which is:
(6/100) x $40,000 = $2,400
Her employer contributes 3% of Kaysia's salary, which is:
(3/100) x $40,000 = $1,200
Therefore, the total contribution to Kaysia's account is $2,400 (from Kaysia) + $1,200 (from her employer) = $3,600.
Since Kaysia is participating in a SIMPLE plan provided by her employer, the contributions made by the employer are immediately fully vested. This means that the full amount of $3,600 will be vested in Kaysia's account at the end of 2011.
Therefore, the correct answer is: $3,600.