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An employee earning $80,000 per year decides to begin contributing to his company’s 401(k) plan...

An employee earning $80,000 per year decides to begin contributing to his company’s 401(k) plan effective January 1st. Assuming he is in the 25% tax bracket, contributes 15% of his pay into the plan each month and receives a company match of $0.50 for every dollar he contributes, what is his taxable compensation that year?

A.

$51,000

B.

$68,000

C.

$74,000

D.

$80,000

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