Bob Has Decided to Contribute $2,800 to a Roth IRA

question 205

Multiple Choice

Bob has decided to contribute $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.

---

Definitions:

Hostile Creeks

A faction within the Creek Nation that opposed U.S. expansion and policies, often resulting in armed conflict in the early 19th century.

War of 1812

A military conflict fought between the United States and the United Kingdom from 1812 to 1815, largely over issues of trade restrictions and American expansionism.

Federalists

Supporters of the ratification of the U.S. Constitution and the creation of a strong federal government.

Democratic Ethos

The set of beliefs and values that emphasizes the importance of participation in the democratic process, equality, and the welfare of the community.