IRA Cheat Sheet 2026

The 30 highest-yield IRA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A surviving spouse who inherits an IRA can choose to treat it as their own IRA. What is the main benefit of this election? → They can delay RMDs until they reach their own RMD age
2. As of 2020, what is the maximum age at which you can make traditional IRA contributions? → There is no age limit
3. How long does the IRS allow to complete a 60-day rollover if the delay was due to a financial institution error? → The IRS may grant a waiver allowing more time
4. Can an individual contribute to both a traditional IRA and a Roth IRA in the same tax year? → Yes, but total contributions cannot exceed the annual limit
5. True or False: Anyone can make contributions to an IRA, regardless of their income level. → False
6. If an individual performs a direct rollover from a 401(k) to a traditional IRA, does the IRS consider this as using their one rollover per year? → No, direct rollovers from employer plans to IRAs are not subject to the once-per-year rule
7. Are Roth IRAs subject to required minimum distributions (RMDs) during the account owner's lifetime? → No, Roth IRAs have no lifetime RMDs for the original owner
8. Can IRA distributions be rolled over back into an IRA if the account holder changes their mind? → Yes, within 60 days
9. True or False: Married individuals who file jointly with their spouse may combine their IRA assets into a jointly funded spousal IRA. → False
10. What happens to the 10% penalty if a distribution from a traditional IRA is used to pay qualified higher education expenses? → The penalty is waived entirely
11. True or False: If your 401(k) has been maxed out, you cannot contribute to an IRA. → False
12. Which strategy allows a taxpayer to move after-tax money from a traditional IRA into a Roth IRA, often called the 'backdoor Roth'? → Roth conversion
13. If you're 65 or older, or if one of the following applies to you: → Blind
14. What happens if an individual contributes more than the allowed IRA limit in a given year? → A 6% excise tax is imposed on the excess amount
15. Which of the following is an exception to the 10% early withdrawal penalty for IRA distributions? → First-time home purchase (up to $10,000)
16. Can a non-deductible traditional IRA contribution be converted to a Roth IRA without paying taxes? → Yes, the after-tax basis is not taxed, but the pro-rata rule may apply
17. What tax consequence applies when IRA contributions exceed the annual limit and the excess is not corrected? → A 6% excise tax on the excess for each year it remains
18. If a Roth IRA owner withdraws only contributions (not earnings) before age 59½, what is the tax treatment? → The withdrawal is tax-free and penalty-free
19. What is the order of distributions from a Roth IRA (ordering rules)? → Contributions first, then conversions, then earnings
20. Which of the following is NOT considered earned income for IRA contribution purposes? → Social Security benefits
21. What is the income limit for married filing jointly couples to contribute directly to a Roth IRA in 2024? → Phase-out $193,000–$203,000
22. How are traditional IRA distributions taxed? → As ordinary income
23. What are the income limits for contributing directly to a Roth IRA for single filers in 2024? → Phase-out begins at $146,000, ends at $161,000
24. How many times per year can an individual perform an indirect (60-day) IRA-to-IRA rollover? → Once per year across all IRAs
25. What is a reverse rollover in the context of IRAs? → Rolling IRA funds into an employer-sponsored retirement plan
26. What is a Substantially Equal Periodic Payment (SEPP) plan used for? → Taking penalty-free distributions before age 59½ using IRS-approved methods
27. Which form must be filed to track non-deductible traditional IRA contributions? → Form 8606
28. Which of the following assets CAN be rolled over from a 401(k) to a traditional IRA? → After-tax contributions (non-Roth)
29. Which type of income qualifies as earned income for traditional IRA contribution purposes? → Self-employment net earnings
30. Which of the following is a recognized exception to the 10% early withdrawal penalty for a traditional IRA? → First-time home purchase up to $10,000 (lifetime limit)