AFTR Retirement Accounts and Tax Treatment

Question 1

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

Accepted Answer

$7,000

Answer

$6,000

Answer

$6,500

Answer

$7,500

Question 2

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

Accepted Answer

73

Answer

70½

Answer

72

Answer

75

Question 3

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

Accepted Answer

Roth IRA

Answer

Traditional IRA

Answer

SEP-IRA

Answer

SIMPLE IRA

Question 4

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

Accepted Answer

10%

Answer

5%

Answer

15%

Answer

20%

Question 5

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

Accepted Answer

Contribute to a traditional IRA but lose the deduction

Answer

Deduct the full traditional IRA contribution

Answer

Not contribute to any IRA

Answer

Only contribute to a Roth IRA

Question 6

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

Accepted Answer

Form 8606

Answer

Form 5498

Answer

Form 1099-R

Answer

Schedule D

Question 7

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

Accepted Answer

$1,000

Answer

$500

Answer

$1,500

Answer

$3,000