IRA Quiz Questions and Answers
Traditional IRAs are "tax-deferred" which means you owe no tax on the earnings until you withdraw
them. - Answer-true
Which of the following is not a type of IRA? - Answer-Rule 103 IRA
Sam is married and earned $40,000 in 2014. He has no retirement plan at his work. On April 1, 2015 he
contributes $1,000 to a Roth IRA. On his 2014 tax return he can take a tax deduction of $1,000. -
Answer-false
Generally, with your IRA you can invest in almost any type of investment including fine art and rare
gems. - Answer-false
Jim is 60 years old and is in the 25% tax bracket. If he withdraws $10,000 that he invested when he was
45 from his Roth IRA to buy a home entertainment system, how much total tax will he pay on this
withdrawal? - Answer-None, this withdrawal is tax free
If you have no retirement plan at your place of employment, you may contribute up to $17,500 in 2014
to a traditional IRA. - Answer-false
Traditional IRAs are "tax-deferred" which means you owe no tax on the earnings until you withdraw
them. - Answer-true
Which of the following is not a type of IRA? - Answer-Rule 103 IRA
Sam is married and earned $40,000 in 2014. He has no retirement plan at his work. On April 1, 2015 he
contributes $1,000 to a Roth IRA. On his 2014 tax return he can take a tax deduction of $1,000. -
Answer-false
Generally, with your IRA you can invest in almost any type of investment including fine art and rare
gems. - Answer-false
Jim is 60 years old and is in the 25% tax bracket. If he withdraws $10,000 that he invested when he was
45 from his Roth IRA to buy a home entertainment system, how much total tax will he pay on this
withdrawal? - Answer-None, this withdrawal is tax free
If you have no retirement plan at your place of employment, you may contribute up to $17,500 in 2014
to a traditional IRA. - Answer-false
