a. Assume the Gordons average tax rate is 25% currently and for the future until retirement but is expected to be 15% after he retires. If Michael contributes $1000 into his IRA today, how much in taxes will he save. If this contribution grows to $10,000 after he retires, and he withdraws it all at once, how much in taxes will he have to pay

b. Michaels company is expected to announce a policy that in the future, it will match 50% of the contributions up to 8% of the salary. How much should Michael contribute to his retirement account to take full advantage of this policy and would you recommend that he do so?