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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Those relating to the basic biological necessities of life.

Maslow's Hierarchy

A psychological theory proposing that human needs are arranged in a hierarchical order, from basic physical needs to self-actualization.

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