Compute that exact amount of tax the couple will save show


The Zepps recently heard that making a contribution to an individual retirement account (IRA) may be a wise tax move. It is their understanding that contributions to a traditional or conventional IRA are deductible and the earnings on the accounts are not taxable until withdrawn. Assuming both Larry and Cathy make a deductible contribution of $4,000 each for a total of $8,000, compute that exact amount of tax the couple will save. Show computations illustrating how the savings are derived.

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Accounting Basics: Compute that exact amount of tax the couple will save show
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