Alimony resulting from a divorce agreement

1. All of the following types of income are considered earned income for a traditional IRA contribution except:

a. K-1 income from an S corporation

b. W-2 income

c. self-employment income

d. Alimony resulting from a divorce agreement signed June 1, 2018

2. Which of the following types of income is considered earned income for a traditional IRA contributions?

a. Dividends

b. Rental income

c. Capital gains

d. Partnership income from a law firm

3. Seth and Morgan were just married, but Seth does not work. They are both 25 years old. Morgan supports Seth with funds from her trust fund, investment income of $12,000, and her part-time earnings of $7000 this year. If Morgan contributes $6000 in 2019 to her Roth IRA, how much can Seth contribute to his traditional IRA?

a. $0

b. $250

c. $1,000

d. $6,000

4. What is the earliest age that an IRA catch-up contributions can be made?

a. 45

b. 50

c. 60

d. 65

5. Charles, a single 29-year old CEO of a technology start up company , earns a $2 million base salary with a $400,000 bonus. He is not a participant in any retirement plans at work. What is the maximum deductible IRA contribution Charles can make during 2019?

a. $0

b. $1000

c. $5,500

d. $6,000

6. How are excess contributions to an IRA penalized?

7. How do individual retirement annuities differ from a traditional IRA account?

8. What are the minimum distribution rules for traditional IRAs?

9. Compare and contrast a traditional IRA to a Roth IRA.

10. Discuss the impact of violating the prohibited transaction rules of an IRA.



Roth IRA 101

Retirement Topics – IRA Contribution Limits

When Can a Retirement Plan Distribute Benefits?

Publication 590-B (2018), Distributions from Individual Retirement Arrangements (IRAs)

Publication 590-A (2018), Contributions to Individual Retirement Arrangements (IRAs)


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