ENROLLED AGENT PART 2 UPDATED EXAMS TEST
PAPER QUESTIONS AND ANSWERS SURE A+
✔✔Archer Medical Savings Accounts (MSAs)
-Tax-exempt trust or custodial account.
-Interest and earnings are tax free.
-Portable if you change employers.
-Contributions remain until used.
-Can make contributions until April 15th. - ✔✔-For self-employed and employees of
small employers.
-Both employee and employer cannot contribute in the same year.
-Max deduction: 65% or 75% of HDHP and cannot contribute more than earned.
-6% excise tax on excess contributions.
-20% tax on distributions not used for medical.
✔✔Student Loan Interest - ✔✔Up to $2,500 of interest paid.
Phase-outs:
Single $65,000-$80,000
MFJ $130,000-$160,000
✔✔Traditional IRAs - ✔✔1. Max contribution = $5,500 ($6,500 for age 50) or lessor of
earned income.
, 2. Excess contributions = 6% penalty
3. Distributions are taxable
4. Distributions < age 59 1/2 = 10% penalty
5. RMD at age 70 1/2 or 50% penalty
✔✔Traditional IRAs
Deduction Limitation Phase-outs for those covered by an employer plan: - ✔✔Phase-
outs begin and reduce to zero at:
MAGI $60,000-$70,000 Single, HH
MAGI $96,000-$116,000 MFJ, QW
Only partial deduction for MFS*, but no deduction if $10,000 or more.
*MFS is Single if did not live w/ spouse during yr.
✔✔Traditional IRAs
Deduction Limitation Phase-outs for those who have A SPOUSE COVERED by an
employer plan: - ✔✔Phase-outs begin and reduce to zero at:
MAGI $181,000-$191,000 MFJ
Only partial deduction for MFS*, but no deduction if $10,000 or more.
*MFS is Single if did not live w/ spouse during yr.
✔✔Form 8606 - ✔✔Nondeductible IRAs
✔✔Roth IRA - ✔✔1. Max contribution = $5,500 ($6,500 for age 50) or lessor of earned
income.
2. Excess contributions (above max) = 6% penalty.
3. Distributions of earnings NON-taxable if held for 5 years.
4. Distributions < age 59 1/2 = 10% penalty.
5. No RMDs at any age & No penalties!
✔✔Roth IRA
(Limited to how much you can contribute if covered by an employer plan): - ✔✔Phase-
outs reduce from full to zero contribution:
MAGI $116,000-$131,000 Single, HH
MAGI $183,000-$193,000 MFJ, QW
MAGI $1-$10,000 MFS*, but full if $0
*MFS is Single if did not live w/ spouse during yr.
✔✔Foreign Earned Income Exclusion (FEIE) - ✔✔Up to $100,800 (2015)
plus Housing Allowance at 14% of exclusion amount
✔✔Tax Brackets (Ordinary Income) - ✔✔1. 10%
2. 15%
PAPER QUESTIONS AND ANSWERS SURE A+
✔✔Archer Medical Savings Accounts (MSAs)
-Tax-exempt trust or custodial account.
-Interest and earnings are tax free.
-Portable if you change employers.
-Contributions remain until used.
-Can make contributions until April 15th. - ✔✔-For self-employed and employees of
small employers.
-Both employee and employer cannot contribute in the same year.
-Max deduction: 65% or 75% of HDHP and cannot contribute more than earned.
-6% excise tax on excess contributions.
-20% tax on distributions not used for medical.
✔✔Student Loan Interest - ✔✔Up to $2,500 of interest paid.
Phase-outs:
Single $65,000-$80,000
MFJ $130,000-$160,000
✔✔Traditional IRAs - ✔✔1. Max contribution = $5,500 ($6,500 for age 50) or lessor of
earned income.
, 2. Excess contributions = 6% penalty
3. Distributions are taxable
4. Distributions < age 59 1/2 = 10% penalty
5. RMD at age 70 1/2 or 50% penalty
✔✔Traditional IRAs
Deduction Limitation Phase-outs for those covered by an employer plan: - ✔✔Phase-
outs begin and reduce to zero at:
MAGI $60,000-$70,000 Single, HH
MAGI $96,000-$116,000 MFJ, QW
Only partial deduction for MFS*, but no deduction if $10,000 or more.
*MFS is Single if did not live w/ spouse during yr.
✔✔Traditional IRAs
Deduction Limitation Phase-outs for those who have A SPOUSE COVERED by an
employer plan: - ✔✔Phase-outs begin and reduce to zero at:
MAGI $181,000-$191,000 MFJ
Only partial deduction for MFS*, but no deduction if $10,000 or more.
*MFS is Single if did not live w/ spouse during yr.
✔✔Form 8606 - ✔✔Nondeductible IRAs
✔✔Roth IRA - ✔✔1. Max contribution = $5,500 ($6,500 for age 50) or lessor of earned
income.
2. Excess contributions (above max) = 6% penalty.
3. Distributions of earnings NON-taxable if held for 5 years.
4. Distributions < age 59 1/2 = 10% penalty.
5. No RMDs at any age & No penalties!
✔✔Roth IRA
(Limited to how much you can contribute if covered by an employer plan): - ✔✔Phase-
outs reduce from full to zero contribution:
MAGI $116,000-$131,000 Single, HH
MAGI $183,000-$193,000 MFJ, QW
MAGI $1-$10,000 MFS*, but full if $0
*MFS is Single if did not live w/ spouse during yr.
✔✔Foreign Earned Income Exclusion (FEIE) - ✔✔Up to $100,800 (2015)
plus Housing Allowance at 14% of exclusion amount
✔✔Tax Brackets (Ordinary Income) - ✔✔1. 10%
2. 15%
