1. **State the problem:** Andres contributes $350 to a tax-deferred retirement account and $50 to an FSA each biweekly paycheck. His gross biweekly pay is $1870, and his federal tax rate is 17%. We need to find how much he reduced his annual federal taxes by. 2. **Understand the tax reduction:** Contributions to tax-deferred accounts and FSAs reduce taxable income, which reduces taxes owed. The tax reduction equals the total contributions multiplied by the tax rate. 3. **Calculate total biweekly contributions:** $$350 + 50 = 400$$ 4. **Calculate annual contributions:** There are 26 biweekly paychecks in a year, so $$400 \times 26 = 10400$$ 5. **Calculate tax savings:** Multiply annual contributions by the tax rate: $$10400 \times 0.17 = 1768$$ 6. **Final answer:** Andres reduced his annual federal taxes by **$1768**.