HRB EXAM SCRIPT 2025/2026 QUESTIONS WITH ANSWERS
GRADED A+
✔✔What are the contribution limitations for a spousal IRA? - ✔✔"An eligible person may
establish an IRA for their spouse. The total
✔✔amount that may be contributed for the lower-income spouse is the lesser - ✔✔
✔✔of 100% of the couple's combined compensation, reduced by the amount - ✔✔
✔✔contributed to the higher-income spouse's traditional and Roth IRAs, or - ✔✔
✔✔$5,500 ($6,500 if the lower-income spouse is age 50 or older)." - ✔✔
✔✔"A single taxpayer is receiving pension benefits from previous - ✔✔
✔✔employment. Are they considered an active participant because - ✔✔
✔✔of this?" - ✔✔"No. A person is not considered an active participant solely because
they
✔✔are receiving retirement benefits from previous employment." - ✔✔
✔✔"What is the easiest way to determine if an employee is an active - ✔✔
✔✔participant in their employer's qualified retirement plan?" - ✔✔Look to see if the
Retirement plan box in box 13 of the W-2 is marked
✔✔"Under what circumstances would an active participant's deduction - ✔✔
✔✔be limited?" - ✔✔"When the taxpayer is married filing separately and lived with their
✔✔spouse at any time during the year, or their modified AGI for 2016 exceeds - ✔✔
✔✔$61,000 (S, HH, or MFS and lived apart the entire year) or $98,000 (MFJ - ✔✔
✔✔or QW)." - ✔✔
✔✔Under what circumstances would a nonparticipant whose spouse is an active
participant's deduction be limited? - ✔✔"When the taxpayer and spouse file married
filing separately and lived
✔✔together at any time during the year, or when their modified AGI exceeds - ✔✔
,✔✔$184,000." - ✔✔
✔✔How is modified AGI determined for traditional IRA purposes? - ✔✔"By adding back
any student loan interest deduction, tuition and fees
✔✔deduction, excludible U.S. Savings Bond interest, excludible adoption benefits, - ✔✔
✔✔domestic production activities adjustment, and certain excludible - ✔✔
✔✔foreign and U.S. possession income. - ✔✔
✔✔" - ✔✔
✔✔"What are the main differences between traditional IRAs and Roth - ✔✔
✔✔IRAs?" - ✔✔"Contributions to a Roth IRA are never deductible, but qualified
distributions
✔✔are exempt from tax. Participation in an employer-maintained - ✔✔
✔✔retirement plan has no effect on Roth IRA contributions, and contributions - ✔✔
✔✔can be made after the taxpayer has reached age 70½. Contributions - ✔✔
✔✔to Roth IRAs are not reported on the tax return." - ✔✔
✔✔"Under what circumstances would a taxpayer's Roth IRA contributions - ✔✔
✔✔be limited?" - ✔✔"When the taxpayer's filing status is married filing separately and
lived
✔✔with their spouse at any time during the year, or their modified AGI - ✔✔
✔✔exceeds $117,000 (S, HH, or MFS and lived apart the entire year) or - ✔✔
✔✔$184,000 (MFJ or QW)." - ✔✔
✔✔How is modified AGI computed for Roth IRA purposes? - ✔✔"The same as it is for
traditional IRA purposes, except that any amount
✔✔arising from the conversion of a traditional IRA to a Roth IRA is subtracted." - ✔✔
, ✔✔"A single taxpayer has AGI of $80,000. He is an active participant - ✔✔
✔✔in an employer-maintained pension plan. Why should he choose - ✔✔
✔✔to contribute to a Roth IRA rather than a traditional IRA?" - ✔✔"His contribution to a
traditional IRA would not be deductible. While the
✔✔same is true of Roth IRA contributions, qualifying distributions from his - ✔✔
✔✔Roth IRA would not be subject to tax at all. Distributions from a traditional - ✔✔
✔✔IRA containing nondeductible contributions would be partly taxable." - ✔✔
✔✔"Which taxpayers are not entitled to claim a retirement savings - ✔✔
✔✔contribution credit (the Saver's Credit)?" - ✔✔"Taxpayers who were:
✔✔• Born after January 1, 1999. - ✔✔
✔✔• Claimed as a dependent on someone else's 2016 return. - ✔✔
✔✔• Full-time students during any part of five-calendar months in 2013" - ✔✔
✔✔Which contributions qualify for the Saver's Credit? - ✔✔"Contributions to traditional
and Roth IRAs and voluntary salary deferrals
✔✔to most employer plans." - ✔✔
✔✔"What types of distributions will reduce the amount eligible for the - ✔✔
✔✔Saver's Credit?" - ✔✔"Distributions from the same types of plans made in the two
tax years prior
✔✔to the current year up to the due date of the current year's return (including - ✔✔
✔✔extensions)." - ✔✔
✔✔"What is the maximum amount of contributions on which the - ✔✔
✔✔Saver's Credit may be based?" - ✔✔$2,000 for 2016. In the case of a joint return, up
to $2,000 per spouse on a joint return
GRADED A+
✔✔What are the contribution limitations for a spousal IRA? - ✔✔"An eligible person may
establish an IRA for their spouse. The total
✔✔amount that may be contributed for the lower-income spouse is the lesser - ✔✔
✔✔of 100% of the couple's combined compensation, reduced by the amount - ✔✔
✔✔contributed to the higher-income spouse's traditional and Roth IRAs, or - ✔✔
✔✔$5,500 ($6,500 if the lower-income spouse is age 50 or older)." - ✔✔
✔✔"A single taxpayer is receiving pension benefits from previous - ✔✔
✔✔employment. Are they considered an active participant because - ✔✔
✔✔of this?" - ✔✔"No. A person is not considered an active participant solely because
they
✔✔are receiving retirement benefits from previous employment." - ✔✔
✔✔"What is the easiest way to determine if an employee is an active - ✔✔
✔✔participant in their employer's qualified retirement plan?" - ✔✔Look to see if the
Retirement plan box in box 13 of the W-2 is marked
✔✔"Under what circumstances would an active participant's deduction - ✔✔
✔✔be limited?" - ✔✔"When the taxpayer is married filing separately and lived with their
✔✔spouse at any time during the year, or their modified AGI for 2016 exceeds - ✔✔
✔✔$61,000 (S, HH, or MFS and lived apart the entire year) or $98,000 (MFJ - ✔✔
✔✔or QW)." - ✔✔
✔✔Under what circumstances would a nonparticipant whose spouse is an active
participant's deduction be limited? - ✔✔"When the taxpayer and spouse file married
filing separately and lived
✔✔together at any time during the year, or when their modified AGI exceeds - ✔✔
,✔✔$184,000." - ✔✔
✔✔How is modified AGI determined for traditional IRA purposes? - ✔✔"By adding back
any student loan interest deduction, tuition and fees
✔✔deduction, excludible U.S. Savings Bond interest, excludible adoption benefits, - ✔✔
✔✔domestic production activities adjustment, and certain excludible - ✔✔
✔✔foreign and U.S. possession income. - ✔✔
✔✔" - ✔✔
✔✔"What are the main differences between traditional IRAs and Roth - ✔✔
✔✔IRAs?" - ✔✔"Contributions to a Roth IRA are never deductible, but qualified
distributions
✔✔are exempt from tax. Participation in an employer-maintained - ✔✔
✔✔retirement plan has no effect on Roth IRA contributions, and contributions - ✔✔
✔✔can be made after the taxpayer has reached age 70½. Contributions - ✔✔
✔✔to Roth IRAs are not reported on the tax return." - ✔✔
✔✔"Under what circumstances would a taxpayer's Roth IRA contributions - ✔✔
✔✔be limited?" - ✔✔"When the taxpayer's filing status is married filing separately and
lived
✔✔with their spouse at any time during the year, or their modified AGI - ✔✔
✔✔exceeds $117,000 (S, HH, or MFS and lived apart the entire year) or - ✔✔
✔✔$184,000 (MFJ or QW)." - ✔✔
✔✔How is modified AGI computed for Roth IRA purposes? - ✔✔"The same as it is for
traditional IRA purposes, except that any amount
✔✔arising from the conversion of a traditional IRA to a Roth IRA is subtracted." - ✔✔
, ✔✔"A single taxpayer has AGI of $80,000. He is an active participant - ✔✔
✔✔in an employer-maintained pension plan. Why should he choose - ✔✔
✔✔to contribute to a Roth IRA rather than a traditional IRA?" - ✔✔"His contribution to a
traditional IRA would not be deductible. While the
✔✔same is true of Roth IRA contributions, qualifying distributions from his - ✔✔
✔✔Roth IRA would not be subject to tax at all. Distributions from a traditional - ✔✔
✔✔IRA containing nondeductible contributions would be partly taxable." - ✔✔
✔✔"Which taxpayers are not entitled to claim a retirement savings - ✔✔
✔✔contribution credit (the Saver's Credit)?" - ✔✔"Taxpayers who were:
✔✔• Born after January 1, 1999. - ✔✔
✔✔• Claimed as a dependent on someone else's 2016 return. - ✔✔
✔✔• Full-time students during any part of five-calendar months in 2013" - ✔✔
✔✔Which contributions qualify for the Saver's Credit? - ✔✔"Contributions to traditional
and Roth IRAs and voluntary salary deferrals
✔✔to most employer plans." - ✔✔
✔✔"What types of distributions will reduce the amount eligible for the - ✔✔
✔✔Saver's Credit?" - ✔✔"Distributions from the same types of plans made in the two
tax years prior
✔✔to the current year up to the due date of the current year's return (including - ✔✔
✔✔extensions)." - ✔✔
✔✔"What is the maximum amount of contributions on which the - ✔✔
✔✔Saver's Credit may be based?" - ✔✔$2,000 for 2016. In the case of a joint return, up
to $2,000 per spouse on a joint return
