Judy believes that another benefit of investing the extra $4,356 in her employer-sponsored retirement plan is the tax savings. Judy is in a 10% marginal tax bracket (when considering her federal and state taxes). How much will investing in this manner save her in taxes annually? Assuming she remains in a 10% marginal tax bracket until she retires, how much will it save her in total over the next 19 years, ignoring the time value of the tax savings?
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