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Municipal bonds and I-bonds (issued by the U.S. Treasury) are non-taxable. 2) You participating in your company's retirement plan? If not, not really try? Every dollar you contribute could trim your taxable income minimizing your taxes to trunk. If the $30,000 yearly person still did not contribute to his IRA, he'd wind up with $850 more within his pocket than if he contributed. But, having contributed, he's got $1,000 more in his IRA and $150, instead of $850, of his pocket.
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