Thomas Contributed $2,800 to a Roth IRA

question 72

Multiple Choice

Thomas contributed $2,800 to a Roth IRA. He is currently in the 25% tax bracket. How will his contribution affect his income tax for the current year?

• A) It will reduce the amount of taxes he owes in the current tax year by $700.
• B) It will increase the amount of taxes he owes in the current year by $700.
• C) It will reduce the amount of taxes he owes in the current year by $2,100.
• D) It will have no effect on the amount of taxes he owes this year.

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