IRA Certified IRA Services Professional 2

Question 1

An IRA owner who turns 73 in 2024 must take their first Required Minimum Distribution (RMD) by what deadline?

Accepted Answer

April 1, 2025

Answer

Under SECURE 2.0, the RMD beginning date is April 1 of the year following the year the owner turns 73.

Question 2

Which type of IRA contribution is made with after-tax dollars and grows tax-free?

Accepted Answer

Roth IRA

Answer

Roth IRA contributions are made with after-tax dollars, so qualified distributions are entirely tax-free.

Question 3

What is the maximum annual contribution to a SIMPLE IRA for an employee under age 50 in 2024?

Accepted Answer

$16,000

Answer

The 2024 SIMPLE IRA elective deferral limit is $16,000 for participants under age 50.

Question 4

Under the 60-day rollover rule, how many rollovers from the same IRA can an individual complete in a 12-month period?

Accepted Answer

One total across all IRAs

Answer

Per the Bobrow ruling and IRS guidance, only one 60-day IRA-to-IRA rollover is permitted per individual across all IRAs in a 12-month period.

Question 5

Which of the following is NOT a qualifying reason for an early IRA distribution to avoid the 10% penalty?

Accepted Answer

Purchasing a vacation home

Answer

Purchasing a vacation home does not qualify as an exception to the 10% early distribution penalty.

IRA - Individual Retirement Account Practice Test