An employee in the 12% tax bracket
invests $2000.00 in a Traditional IRA.
When the employee retires, her salary is in
the 22% tax bracket. What tax will be
assessed on the initial investment when it
opens?
A. Not enough information to answer
B. $440.00
C. $240.00
D. Since the employee used a Traditional IRA, she will pay no taxes
on her investment when it opens.
