IRA Contribution Rules Flashcards

The deductibility of a traditional IRA contribution phases out for single filers covered by a workplace plan at what income range in 2024?

Answer: $77,000–$87,000

For 2024, the phase-out range for single filers with a workplace plan is $77,000 to $87,000 of modified AGI.

What is the phase-out range for married filing jointly where BOTH spouses are covered by a workplace plan for 2024?

Answer: $123,000–$143,000

For 2024, married couples both covered by a workplace plan face a phase-out range of $123,000 to $143,000 for traditional IRA deductibility.

Which of the following is NOT considered earned income for IRA contribution purposes?

Answer: Social Security benefits

Social Security benefits are not considered earned income and cannot be used to fund IRA contributions.

Can an individual contribute to both a traditional IRA and a Roth IRA in the same tax year?

Answer: Yes, but total contributions cannot exceed the annual limit

An individual can contribute to both a traditional and Roth IRA in the same year, but the combined total cannot exceed the annual contribution limit.

When must a SEP-IRA contribution be made for it to count for a given tax year?

Answer: By the employer's tax return deadline including extensions

SEP-IRA contributions can be made up to the employer's tax return deadline including extensions, which can be as late as October 15.

What is the contribution limit for a SEP-IRA in 2024?

Answer: $69,000 or 25% of compensation, whichever is less

For 2024, the SEP-IRA limit is the lesser of $69,000 or 25% of the employee's compensation.