John and Carroll have come to you to help them develop a plan to save for their home while maintaining their retirement saving commitments.
Create a 525- to 700-word plan in which you:
1. Evaluate John and Carroll’s current retirement plans.
2. Calculate current contributions to existing retirement plans.
3. Analyze the impacts of prematurely accessing retirement funds.
4. Recommend which retirement plansjohn and Carroll should continue to contribute to and the amount of future contributions.
5. Recommend which retirement plansjohn and Carroll could potentially access prematurely.
John’s retirement savings and contributions:
Holdings in a money purchase pension: $17,000.00 (No ongoing contributions)
From a former employer plan comprising a target benefit plan
Traditional (IRA): $5,000.00
Ongoing contributions: $2,000/year
Current employer’s 401 (k) plan: $4,500.00
Contributes 5% of pay
Employer matches with 2.5%.
Caroll’s retirement savings and contributions:
Roth (IRA) opened six years ago: $4,000.00 (No ongoing contributions)
Former employer’s SEP plan: $18,000.00 (No ongoing contributions)
Current employer’s 403(b) plan: $9,000.00 Contributes 6% of salary Employer matches with 7%.
Submit your assignment.
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