Jose does not have a retirement plan at work- He currently earns $30,000 in salary and is in the 15% marginal tax bracket- If he contributes the maximum contribution of $5,500 to his traditional IRA, how much money will he save on his income tax liability?

Retirement planning refers to financial strategies of saving, investments, and ultimately distributing money meant to sustain oneself during retirement. Many popular investment vehicles, such as individual retirement accounts (IRAs) and 401(k)s, allow retirement savers to grow their money with certain tax advantages.