If your adjusted gross income is $30,000 and you contribute $3,000 to a retirement plan in pre- tax dollars,then you will pay income tax on a re- computed adjusted gross income of

Question

Quizplus · Accepted Answer

The contribution made to the retirement plan in pre-tax dollars reduces the adjusted gross income by $3,000, making it $27,000. Therefore, the income tax will be calculated on the re-computed adjusted gross income of $27,000.

If Your Adjusted Gross Income Is $30,000 and You Contribute