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Marcus is unmarried and age 32. Even though she participates in an employer-sponsored retirement plan, Marcus contributed $4,200 to a traditional IRA during the year.

Marcus is unmarried and age 32. Even though she participates in an employer-sponsored retirement plan, Marcus contributed $4,200 to a traditional IRA during the year. Marcus files as a head of household, her AGI before the contribution is $43,000, and her marginal tax rate is 12 percent.

EXHIBIT 13-8 2022 Applicable Percentages for Saver's Credit by Filing Status and AGI

Applicable Percentage Joint Filers AGI Heads of Household AGI All Other Filers AGI
50% $0 to $41,000 $0 to $30,750 $0 to $20,500
20 $41,001 to $44,000 $30,751 to $33,000 $20,501 to $22,000
10 $44,001 to $68,000 $33,001 to $51,000 $22,001 to $34,000
No credit available Above $68,000 Above $51,000 Above $34,000

What is the after-tax cost of her $4,200 traditional IRA contribution?

After Tax Cost?

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