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Roth IRA Strategies Flashcards

6 cards from real IRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Roth IRA Strategies flashcards as text

  1. What is the income limit for married filing jointly couples to contribute directly to a Roth IRA in 2024?

    Answer: Phase-out $193,000–$203,000

    For 2024, married filing jointly couples face a Roth IRA phase-out range of $230,000–$240,000.

  2. Can a minor child with earned income open and contribute to a Roth IRA?

    Answer: Yes, any person with earned income can contribute to a Roth IRA regardless of age

    There is no minimum age for a Roth IRA; any person with earned income (including minors) can contribute up to their earned income or the annual limit, whichever is less.

  3. How does a Qualified Charitable Distribution (QCD) differ from a Roth IRA distribution for charitable giving?

    Answer: QCDs can only be made from traditional IRAs (and SEP/SIMPLE IRAs with no ongoing contributions), not Roth IRAs

    QCDs must come from traditional IRAs (or SEP/SIMPLE IRAs with no active contributions); since Roth distributions are already tax-free, a Roth QCD provides no additional tax benefit.

  4. What effect does a Roth IRA conversion have on Medicare premiums?

    Answer: The conversion amount increases MAGI, potentially triggering IRMAA surcharges on Medicare Part B and D premiums

    Roth conversions increase modified adjusted gross income (MAGI), which can trigger Income-Related Monthly Adjustment Amount (IRMAA) surcharges on Medicare premiums.

  5. When is it generally NOT advisable to do a Roth IRA conversion?

    Answer: When you expect lower tax rates in retirement

    If you expect to be in a lower tax bracket in retirement, it is usually not beneficial to convert and pay taxes now at a higher rate.

  6. What happens to a Roth IRA if the account holder dies before the account is five years old?

    Answer: Beneficiaries can inherit the account and the five-year clock continues from the original account opening date

    Beneficiaries inherit the Roth IRA and the five-year clock started by the original owner; if the owner had not yet met the five-year requirement, beneficiaries must wait until it is satisfied.