Dave and Tammy Are Both Employed but Are Eligible to Contribute

Multiple Choice

Dave and Tammy are both employed but are eligible to contribute to a traditional IRA. If they each contribute $5,500 to their respective accounts, how much federal income tax will they save if they are in the 32% marginal tax bracket?

A) $3,520
B) $3,000
C) $1,650
D) $ 0, since contributions to a traditional IRA are not deductible from income for federal income tax.