Spiro invested $800 in an IRA. If he has a 15% marginal tax rate, and the contribution is tax deductible, the tax impact in the year of the investment will be

A)

that he will pay $120 more in taxes.
B)

that he will pay $120 less in taxes.
C)

that he will pay $800 less in taxes.
D)

zero; an IRA has no impact until funds are withdrawn.


B

Business

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