eBook Do the Math 1-7 Employee Benefits Decision Ramon Alvarez, of Nome, Alaska, signed up for his employer’s flexible spending account plan primarily because he can use the money to pay for unreimbursed medical expenses for himself and his disabled son. Ramon is in the 10 percent marginal tax bracket, pays Social Security payroll taxes of 7.65 percent, and pays a 5 percent state income tax rate. How much will he save in income taxes by participating in the program this year in the amount of $3,400? Round your answer to the nearest dollar.