Answer:
Mustafa's pretax income is $59,808.
Given in the question Mustafa's annual salary = $67,200
and Mustafa contribute 11% of his salary to his 401k plan.
Since we know that 401 k plan is a retirement plan in which an employee gets the exemption from his salary on a pretax basis.
Therefore exemption will be = 11% of
$67,200
= 67,200×0.11
= $7,392
Now pretax income or taxable income = 67,200-7,392 = $59,808
Answer:
You have to subtract the 11% that you are putting into your 401k to find out how much you are earning and that you're not putting into retirement.
67,200*0.11 = 7,392
67,200 - 7,392 = 59,808
Explanation : Hope it helps...
