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02-08-2024
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Judy believes that another benefit of investing the extra $ 2196 in her employer-sponsored retirement plan is the tax savings. Judy is in a 32% marginal tax bracket (when considering her federal and state taxes). How much will investing in this manner save her in taxes annually? Assuming she remains in a 32% marginal tax bracket until she retires, how much will it save her in total over the next 18 years, ignoring the time value of the tax savings?

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