IRA Traditional IRA Tax Rules and Deductibility 2

Question 1

For 2024, at what modified adjusted gross income (MAGI) does the traditional IRA deductibility phase-out begin for a single filer covered by a workplace retirement plan?

Accepted Answer

$77,000

Answer

$60,000

Answer

$73,000

Answer

$87,000

Question 2

For 2024, a married person filing jointly who is NOT covered by a workplace plan but whose spouse IS covered faces a deductibility phase-out range of:

Accepted Answer

$230,000–$240,000

Answer

$123,000–$143,000

Answer

$183,000–$193,000

Answer

$206,000–$246,000

Question 3

A married individual filing separately who is covered by a workplace retirement plan faces a deductibility phase-out range starting at:

Accepted Answer

$0

Answer

$25,000

Answer

$50,000

Answer

$73,000

Question 4

Which type of income qualifies as earned income for traditional IRA contribution purposes?

Accepted Answer

Self-employment net earnings

Answer

Dividend income

Answer

Capital gains distributions

Answer

Rental income

Question 5

Under the Tax Cuts and Jobs Act, alimony received from divorce agreements finalized after December 31, 2018 is treated as:

Accepted Answer

Not earned income for IRA contribution purposes

Answer

Earned income eligible for IRA contributions

Answer

Earned income only if the payer elects it

Answer

Partially earned income up to $6,000

Question 6

A recharacterization of an IRA contribution allows you to:

Accepted Answer

Change a Roth IRA contribution to a traditional IRA contribution (or vice versa)

Answer

Withdraw IRA funds tax-free after age 55

Answer

Roll over a 401(k) into an IRA penalty-free

Answer

Delay required minimum distributions by five years

Question 7

Which of the following does NOT count as earned income for purposes of making an IRA contribution?

Accepted Answer

Interest and dividend income

Answer

Wages from a part-time job

Answer

Net profit from a sole proprietorship

Answer

Taxable combat pay elected by a military member