Dave and Tammy Are Both Employed but Are Eligible to Contribute

question 89

Multiple Choice

Dave and Tammy are both employed but are eligible to contribute to a traditional IRA. If they each contribute $5,500 to their respective accounts, how much federal income tax will they save if they are in the 32% marginal tax bracket?

• A) $3,520
• B) $3,000
• C) $1,650
• D) $ 0, since contributions to a traditional IRA are not deductible from income for federal income tax.

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Estoppel

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Incorporation Statutes

Laws that govern the process of forming a corporation, including regulations around filing articles of incorporation, operating bylaws, and organizational structure.