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Amber's employer, Lavender, Inc., uses a 4 0 1 ( k ) plan that permits salary deferral elections by its employees. Amber's salary is $
Amber's employer, Lavender, Inc., uses a plan that permits salary deferral elections by its employees. Amber's salary is $ and her marginal tax rate is and she is years old.
a What is the maximum amount Amber can elect for salary deferral treatment for
$
b If Amber elects salary deferral treatment for the above amount, how much can she save in Federal income taxes?
Her tax liability for would be reduced by $
c What is the recommended amount that Amber should elect as salary deferral treatment for considering only the Federal income tax effects?
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