IRA Traditional IRA Tax Rules and Deductibility

Question 1

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

Accepted Answer

$7,000

Answer

$5,500

Answer

$6,000

Answer

$6,500

Question 2

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

Accepted Answer

$1,000

Answer

$1,500

Answer

$2,000

Answer

$3,000

Question 3

As of 2020, what is the maximum age at which you can make traditional IRA contributions?

Accepted Answer

There is no age limit

Answer

70½

Answer

72

Answer

73

Question 4

What is the tax treatment of investment earnings inside a traditional IRA?

Accepted Answer

Tax-deferred growth

Answer

Tax-free growth

Answer

Taxed annually as ordinary income

Answer

Subject to capital gains tax each year

Question 5

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

Accepted Answer

The tax filing deadline (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 6

Which form must be filed to track non-deductible traditional IRA contributions?

Accepted Answer

Form 8606

Answer

Form 5329

Answer

Form 1040-SR

Answer

Form W-2P

Question 7

Which of the following is the primary factor that determines whether a traditional IRA contribution is tax-deductible?

Accepted Answer

Whether the taxpayer or spouse is covered by a workplace retirement plan

Answer

The IRA custodian selected

Answer

The taxpayer's credit score

Answer

The state in which the taxpayer resides