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Baxter is a office manager who works for Allied Company and is covered under its retirement plan. Baxter's AGI is $69,000, and he wants to
Baxter is a office manager who works for Allied Company and is covered under its retirement plan. Baxter's AGI is $69,000, and he wants to contribute $2,000 to either an IRA or his employer's salary-reduction plan. Since he is in the 25 percent marginal tax bracket, he would save ____ in taxes by using the IRA and ____ by using the salary-reduction plan.
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