Gunnar B$.($age $42)$ and Hannah R$.($age $48)$ Ferguson are married and live at $5944$ Over$-$hill Road, Council Bluffs, IA $51503($a suburb of Omaha$).$ Gunnar is a chemist employedby BAC Pharmaceuticals, Inc., and Hannah is a self$-$employed doctor of anesthesiology.They are calendar$-$year, cash$-$basis taxpayers$\mathrm{.}1.$ BAC Pharmaceuticals develops and produces injectable medicines used in che$-$motherapy treatments for cancer patients. Gunnar$$s Form W$2$ from BAC reportstaxable wages of $$91,180$ which is comprised of the following items. Gunnarmanages the Omaha facility for an annual salary of $$95,000.$ BAC makes con$-$tributions to a qualified defined contribution pension plan for all its full$-$timeemployees which are not included in current compensation. Although Gunnarcould make contributions into the plan, he chose not to do so in $2022.$ Gun$-$nar participates in his employer$$s group health insurance plan to which hecontributed $$4,000$ in $2022$ for medical coverage. These contributions are madewith pre$-$tax dollars, so his taxable salary is reduced by $$4,000.$ The health plancovers Gunnar, Hannah, and their two dependent children. Because of the riskassociated with