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. What is the primary purpose of IRS Form 5498? → To report IRA contributions, rollovers, RMD information, and fair market value to the IRS
3. As of 2020, what is the maximum age at which you can make traditional IRA contributions? → There is no age limit
4. 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
5. Which statement about IRA rollovers is correct? → You are limited to one indirect (60-day) rollover per 12-month period across all IRAs
6. How does contributing to a traditional IRA reduce your current tax bill? → Deductible contributions reduce your taxable income
7. Which IRS form must be filed to report nondeductible Traditional IRA contributions and track basis? → Form 8606
8. What is the income phase-out range for Roth IRA contributions for a single filer in 2024? → $146,000–$161,000
9. 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
10. How does an inherited IRA differ from a regular IRA for a non-spouse beneficiary under the SECURE Act? → The beneficiary must withdraw all funds within 10 years
11. True or False: Anyone can make contributions to an IRA, regardless of their income level. → False
12. What is the term for the tax strategy of converting a traditional IRA to a Roth IRA in a low-income year? → Roth conversion
13. 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
14. 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
15. Can IRA distributions be rolled over back into an IRA if the account holder changes their mind? → Yes, within 60 days
16. What penalty applies if you fail to take your Required Minimum Distribution (RMD) from a traditional IRA? → 25% excise tax on the amount not withdrawn
17. True or False: Married individuals who file jointly with their spouse may combine their IRA assets into a jointly funded spousal IRA. → False
18. 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
19. True or False: If your 401(k) has been maxed out, you cannot contribute to an IRA. → False
20. Which of the following investments is explicitly prohibited inside an IRA under IRC Section 408? → Collectibles such as artwork and antiques
21. 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
22. If you're 65 or older, or if one of the following applies to you: → Blind
23. What is the IRS form used by IRA custodians to report IRA distributions to the IRS and the account owner? → Form 1099-R
24. 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
25. Which of the following is an exception to the 10% early withdrawal penalty for IRA distributions? → First-time home purchase (up to $10,000)
26. What does it mean to 'roll over' an IRA? → Transfer funds from one retirement account to another
27. 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
28. Which of the following is a qualified exception to the 10% early withdrawal penalty for IRAs? → Permanent disability
29. Which of the following is NOT a qualifying exception to the 10% early withdrawal penalty? → Vacation expenses
30. What happens to an IRA if the account holder dies without naming a beneficiary? → The IRA passes through the estate and is subject to probate