How much tax does save by deferring income


Marissa participates in her employer's nonqualified deferred compensation plan. For 2013, she is deferring 15 percent of her $405,000 annual salary.

Assuming this is her only source of income and her marginal income tax rate is 30 percent, how much tax does Marissa save in 2013 by deferring this income (ignore payroll taxes)?

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