IRA IRA Contribution Rules 3

Question 1

The deductibility of a traditional IRA contribution phases out for single filers covered by a workplace plan at what income range in 2024?

Accepted Answer

$77,000–$87,000

Answer

For 2024, the phase-out range for single filers with a workplace plan is $77,000 to $87,000 of modified AGI.

Question 2

What is the phase-out range for married filing jointly where BOTH spouses are covered by a workplace plan for 2024?

Accepted Answer

$123,000–$143,000

Answer

For 2024, married couples both covered by a workplace plan face a phase-out range of $123,000 to $143,000 for traditional IRA deductibility.

Question 3

Which of the following is NOT considered earned income for IRA contribution purposes?

Accepted Answer

Social Security benefits

Answer

Social Security benefits are not considered earned income and cannot be used to fund IRA contributions.

Question 4

Can an individual contribute to both a traditional IRA and a Roth IRA in the same tax year?

Accepted Answer

Yes, but total contributions cannot exceed the annual limit

Answer

An individual can contribute to both a traditional and Roth IRA in the same year, but the combined total cannot exceed the annual contribution limit.

Question 5

When must a SEP-IRA contribution be made for it to count for a given tax year?

Accepted Answer

By the employer's tax return deadline including extensions

Answer

SEP-IRA contributions can be made up to the employer's tax return deadline including extensions, which can be as late as October 15.

IRA - Individual Retirement Account Practice Test