Dave and Tammy Are Both Employed but Are Eligible to Contribute

question 86

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 30% marginal tax bracket?

• A) $3,300
• 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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Definitions:

Benefits Administration

The process of managing and overseeing employee benefits programs, such as health insurance, retirement plans, and leave policies.

ESS and MSS Applications

Employee Self-Service and Manager Self-Service applications that enable employees and managers to access and manage their HR-related information directly.

Self-service

This refers to practices and systems that allow individuals to complete tasks and access services independently, often through digital platforms, without direct assistance.

Technology Platform

The underlying technology and software that businesses use to launch products, services, or run their operations more effectively and efficiently.