Christopher Huang is an operations manager for a large manufacturer. He earned $68,500 in 2009 and plans

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Christopher Huang is an operations manager for a large manufacturer. He earned $68,500 in 2009 and plans to contribute the maximum allowed to the firm’s 401(k) plan. Assuming that Christopher is in the 25% tax bracket, calculate his taxable income and the amount of his tax savings. How much did it actually cost Christopher on an after-tax basis to make this retirement plan contribution?

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Personal Financial Planning

ISBN: 9781439044476

12th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley

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