Baxter is a office manager who works for Allied Company and is covered under its retirement plan.Baxter's AGI is $69,000,and he wants to contribute $2,000 to either an IRA or his employer's salary-reduction plan.Since he is in the 25 percent marginal tax bracket,he would save ____ in taxes by using the IRA and ____ by using the salary-reduction plan.

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The Answer of Baxter is a office manager who works for Allied Company and is covered under its retirement plan.Baxter's AGI is $69,000,and he wants to contribute $2,000 to either an IRA or his employer's salary-reduction plan.Since he is in the 25 percent marginal tax bracket,he would save ____ in taxes by using the IRA and ____ by using the salary-reduction plan.

Baxter Is a Office Manager Who Works for Allied Company