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Retirement Accounts and Tax Treatment Flashcards

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  1. What is the 2024 contribution limit for a traditional IRA for taxpayers under age 50?

    Answer: $7,000

    For 2024, the IRA contribution limit increased to $7,000 for taxpayers under age 50.

  2. At what age must required minimum distributions (RMDs) generally begin under SECURE 2.0 Act provisions effective in 2023?

    Answer: 73

    SECURE 2.0 raised the RMD starting age to 73 for individuals who reach age 72 after December 31, 2022.

  3. Which of the following retirement account types allows qualified withdrawals to be completely tax-free?

    Answer: Roth IRA

    Roth IRA qualified distributions are tax-free because contributions are made with after-tax dollars.

  4. What penalty applies to early distributions from a traditional IRA taken before age 59½, absent a qualifying exception?

    Answer: 10%

    A 10% early withdrawal penalty applies to taxable distributions from traditional IRAs before age 59½ unless an exception applies.

  5. A taxpayer who is an active participant in an employer retirement plan with AGI above the phase-out range may:

    Answer: Contribute to a traditional IRA but lose the deduction

    Active participants above the phase-out range can still contribute to a traditional IRA but cannot deduct the contribution, resulting in a nondeductible contribution.

  6. Which form must a taxpayer file to report nondeductible IRA contributions and track the IRA basis?

    Answer: Form 8606

    Form 8606 is used to report nondeductible IRA contributions and to calculate the taxable portion of IRA distributions when basis exists.

  7. What is the catch-up contribution amount allowed for traditional or Roth IRA contributions for taxpayers age 50 and older in 2024?

    Answer: $1,000

    Taxpayers age 50 and older can contribute an additional $1,000 catch-up amount, bringing the 2024 IRA limit to $8,000.

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Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. irs.gov — Test delivery, eligibility, fees, score validity, exam format, registration deadline, retake policy, time limit, score release, test dates · verified Oct 2026
Retirement Accounts and Tax Treatment Flashcards — AFTR Study Cards with Answers