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If you claim 5 personal exemptions, your taxable income is reduced another $15 thousand to $23,500. Your income tax bill is destined to be approximately 3,000 dollars.

If the $100,000 per year person didn't contribute, he'd end up $720 more in his pocket. But, having contributed, he's got $1,000 more in his IRA and $280 - rather than $720 - in his pocket. So he's got $560 ($280+$1000 less $720) more to his name. Wow!

Someone making $80,000 yearly is really not making a great deal of of your money. The fed's 'take' is a lot now. Income taxes originally started at 1% for the very rich. And already the government is about to tax you more.

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