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Comprehensive Problem 13-84 (LO 13-1, LO 13-2, LO 13-3, LO 13-4, LO 13-5, LO 13- 6) (Static) Jacquiline is unmarried and age 32. Even
Comprehensive Problem 13-84 (LO 13-1, LO 13-2, LO 13-3, LO 13-4, LO 13-5, LO 13- 6) (Static) Jacquiline is unmarried and age 32. Even though she participates in an employer sponsored retirement plan, Jacquiline contributed $3,000 to a traditional IRA during the year. Jacquiline files as a head of household, her AGI before the contribution is $43,000, and her marginal tax rate is 12 percent. (Use Exhibit 13-8) What is the after-tax cost of her $3,000 traditional IRA contribution? After-tax cost EXHIBIT 13-8 2021 Applicable Percentages for Saver's Credit by Filing Status and AGI Applicable Percentage 50% 20 Joint Filers AGI 0 to $39,500 $39,501 to $43,000 10 No credit available $43,001 to $66,000 Above $66,000 Heads of Household AGI 0 to $29,625 $29,626 to $32,250 $32,250 to $49,500 Above $49,500 All Other Filers AGI 0 to $19,750 $19,751 to $21,500 $21,501 to $33,000 Above $33,000
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