James is in the 30% tax bracket. What is the after-tax cost of a $3,000 contribution to his traditional IRA account?
A) $900
B) $1,440
C) $2,100
D) zero

Name: James is in the 30% tax bracket. What is the after-tax cost of a $3,000 contribution to his traditional IRA account? A) $900 B) $1,440 C) $2,100 D) zero
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Question

Quizplus · Accepted Answer

The contribution to a traditional IRA is tax-deductible, meaning James will save 30% of $3,000 in taxes, which is $900. Therefore, the after-tax cost is $3,000 - $900 = $2,100.

James Is in the 30% Tax Bracket