Personal Finance Tax Update
Personal Finance Tax Update
13th Edition
ISBN: 9780357438947
Author: E. Thomas Garman; Raymond Forgue
Publisher: Cengage Learning US
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Chapter 4.1, Problem 2CC
Summary Introduction

To Explain: Marginal tax bracket and impact on taxpayer’s tax advantages contributions to their retirement plan.

Concept Introduction: Many persons invest in retirement plans to save the taxes. Generally, all retirement plans are tax-free at the time of maturity. Amount invested in retirement plans reduces the total taxable income of a person.

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