Contributing $2,000 into a tax-deferred retirement plan in a 28% tax bracket will save

Name: Contributing $2,000 into a tax-deferred retirement plan in a 28% tax bracket will save
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a tax-deferred retirement plan, the contribution is deducted from the taxpayer's taxable income, which means that the taxpayer's taxable income will be reduced by $2,000. In this case, since the taxpayer is in a 28% tax bracket, the tax savings will be $2,000 x 0.28 = $560. Therefore, the correct answer is D.

Contributing $2,000 into a Tax-Deferred Retirement Plan in a 28