Alex Works for a Company with a 401(k)plan

question 156

Multiple Choice

Alex works for a company with a 401(k) plan.He currently earns $80,000 in gross salary and contributes 8% of his gross salary into his 401(k) account.If his marginal tax rate is 33%,how much income tax liability is he saving by participating in his 401(k) ?

• A)$6,400
• B)$2,112
• C)$6,000
• D)$16,800

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