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A 48 year old employee has 2023 taxable income of $120,000 and pays a fixed income tax rate of 20%. If this employee contributes $23,000

A 48 year old employee has 2023 taxable income of $120,000 and pays a fixed income tax rate of 20%. If this employee contributes $23,000 to her 401k in 2023, how much will she realize in tax savings?

$4,600

$4,500

$2,500

$0

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