Solutions to Chapter 4 Problems

Contributions to a Roth IRA are not tax deductible so Robert will be required to pay taxes on the $3,000 before contributing the funds to a Roth IRA. The $840 ($3,000 x 28% marginal tax rate) in taxes will reduce the amount available to contribute to only $2,160 ($3,000 - $840 taxes). ................
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