IRA Test Questions with Complete and
Correct Answers
What's an IRA? - Answer-Individual Retirement Account
What must an IRA owner have to contribute to an IRA? - Answer-
What's an IRA - Answer-Individual Retirement Arrangement.
What must an IRA owner have to contribute to an IRA - Answer-Earned Income.
What qualifies as sources of income - Answer-Wages, salaries, tips, bonuses, commissions, professional
fees, and combat pay.
What requirements must you meet to be eligible to make a regular Traditional IRA contribution -
Answer-Earned income and you must not reach age 70 ½ during the contribution year.
When must a Traditional IRA owner start taking distributions from their IRA - Answer-Once they reach
age 70 ½.
What requirements must you meet to be eligible to make a Roth IRA contribution - Answer-Earned
income and the IRA owner's MAGI must not exceed the IRS limits.
, What does MAGI stand for - Answer-Modified adjusted gross income.
What does the annual regular contribution limit depend on - Answer-Tax year and IRA owner's age.
What is the regular contribution limit - Answer-$6,000.
What is a catch-up contribution limit and who is eligible for it - Answer-$1,000 and IRA owners over age
50.
What does aggregate total mean - Answer-The total of ALL an IRA owners contributions on ALL IRA's
cannot exceed the annual regular contribution limit.
When is the deadline for making regular contributions - Answer-The deadline is that year's deadline for
filing your tax return.
Can the deadline for contributions be extended - Answer-No.
Can an IRA owner make contributions to a previous year - Answer-Yes. Prior-year contributions must be
made in writing.
Is there a deadline for making prior-year contributions - Answer-That year's deadline for tax returns.
What IRS form are contributions reported on - Answer-IRS Form 5498
What is the deadline for reporting contributions to the IRA owner and IRS - Answer-May 31st of the
following year
Correct Answers
What's an IRA? - Answer-Individual Retirement Account
What must an IRA owner have to contribute to an IRA? - Answer-
What's an IRA - Answer-Individual Retirement Arrangement.
What must an IRA owner have to contribute to an IRA - Answer-Earned Income.
What qualifies as sources of income - Answer-Wages, salaries, tips, bonuses, commissions, professional
fees, and combat pay.
What requirements must you meet to be eligible to make a regular Traditional IRA contribution -
Answer-Earned income and you must not reach age 70 ½ during the contribution year.
When must a Traditional IRA owner start taking distributions from their IRA - Answer-Once they reach
age 70 ½.
What requirements must you meet to be eligible to make a Roth IRA contribution - Answer-Earned
income and the IRA owner's MAGI must not exceed the IRS limits.
, What does MAGI stand for - Answer-Modified adjusted gross income.
What does the annual regular contribution limit depend on - Answer-Tax year and IRA owner's age.
What is the regular contribution limit - Answer-$6,000.
What is a catch-up contribution limit and who is eligible for it - Answer-$1,000 and IRA owners over age
50.
What does aggregate total mean - Answer-The total of ALL an IRA owners contributions on ALL IRA's
cannot exceed the annual regular contribution limit.
When is the deadline for making regular contributions - Answer-The deadline is that year's deadline for
filing your tax return.
Can the deadline for contributions be extended - Answer-No.
Can an IRA owner make contributions to a previous year - Answer-Yes. Prior-year contributions must be
made in writing.
Is there a deadline for making prior-year contributions - Answer-That year's deadline for tax returns.
What IRS form are contributions reported on - Answer-IRS Form 5498
What is the deadline for reporting contributions to the IRA owner and IRS - Answer-May 31st of the
following year
