Jose Does Not Have a Retirement Plan at Work

Jose does not have a retirement plan at work.He currently earns $30,000 in salary and is in the 15% marginal tax bracket.If he contributes the maximum contribution of $5,500 to his traditional IRA,how much money will he save on his income tax liability?

A) He won't save any money,since only the Roth IRA has tax deductions on contributions.
B) He won't save any money,since his income does not qualify for tax deductions for a qualified plan.
C) $825
D) $5,000

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free