IRA IRA Contribution Rules

Question 1

What is the standard IRA contribution limit for individuals under age 50 in 2024?

Accepted Answer

$6,500

Answer

$5,500

Answer

$6,000

Answer

$7,000

Question 2

What is the catch-up contribution amount allowed for individuals age 50 or older in 2024?

Accepted Answer

$1,000

Answer

$500

Answer

$1,500

Answer

$2,000

Question 3

Which of the following types of income qualifies as compensation for IRA contribution purposes?

Accepted Answer

W-2 wages

Answer

Rental income

Answer

Dividend income

Answer

Pension distributions

Question 4

What is the deadline for making an IRA contribution that counts toward the prior tax year?

Accepted Answer

April 15 of the following year

Answer

December 31 of the tax year

Answer

January 31 of the following year

Answer

October 15 of the following year

Question 5

A taxpayer can contribute to an IRA even if they also participate in an employer-sponsored retirement plan.

Accepted Answer

True, but the deductibility may be limited

Answer

True, always

Answer

False, never

Answer

True, but only to a Roth IRA

Question 6

Which of the following individuals CANNOT contribute to a traditional IRA?

Accepted Answer

A 72-year-old with W-2 income of $25,000

Answer

A 30-year-old with earned income of $40,000

Answer

A 45-year-old self-employed consultant

Answer

A 60-year-old part-time worker