AFTR Retirement Accounts and Tax Treatment 3

Question 1

An inherited IRA received by a non-spouse beneficiary who is not an Eligible Designated Beneficiary (EDB) must generally be fully distributed within:

Accepted Answer

10 years

Answer

5 years

Answer

15 years

Answer

The beneficiary's life expectancy

Question 2

A self-employed individual's net self-employment income is $100,000. What is the maximum SEP-IRA contribution they can make (before the SE tax deduction adjustment)?

Accepted Answer

$20,000

Answer

$18,500

Answer

$25,000

Answer

$69,000

Question 3

Which of the following correctly describes a backdoor Roth IRA strategy?

Accepted Answer

Making a nondeductible traditional IRA contribution and then converting it to a Roth IRA

Answer

Rolling over a 401(k) directly into a Roth IRA

Answer

Contributing to a Roth 401(k) through an employer

Answer

Withdrawing from a Roth IRA and recontributing within 60 days

Question 4

Form 1099-R is used to report which of the following?

Accepted Answer

Distributions from pensions, annuities, IRAs, and retirement plans

Answer

IRA contributions made during the year

Answer

Employer 401(k) matching contributions

Answer

Roth IRA conversion elections

Question 5

A taxpayer age 55 who separates from service from their employer can take penalty-free distributions from which type of retirement account?

Accepted Answer

Employer-sponsored 401(k) plan

Answer

Traditional IRA

Answer

Roth IRA

Answer

SEP-IRA

Question 6

Which of the following statements about Roth 401(k) plans is correct?

Accepted Answer

Qualified withdrawals are tax-free, and the plan is subject to RMD rules before SECURE 2.0

Answer

Contributions are tax-deductible like a traditional 401(k)

Answer

Roth 401(k)s have lower contribution limits than traditional 401(k)s

Answer

Income limits apply to Roth 401(k) contributions

Question 7

Under the 60-day rollover rule, a taxpayer who receives an IRA distribution must redeposit the funds into an IRA within 60 days to avoid taxation. How many such rollovers are generally allowed per 12-month period?

Accepted Answer

One

Answer

Unlimited

Answer

Two

Answer

One per IRA account held