Retirement Accounts & Taxes (2025) - Tax Quiz

Question 1 of 25

For 2025, what is the basic elective deferral limit an employee can contribute to a 401(k) plan?

$19,500 $22,500 $23,500 $30,000

Question 2 of 25

For 2025, what is the contribution limit for a traditional or Roth IRA for someone under age 50?

$6,000 $6,500 $7,000 $8,000

Question 3 of 25

For 2025, what additional catch-up amount can an IRA owner age 50 or older contribute on top of the regular limit?

$1,000 $3,500 $6,500 $7,500

Question 4 of 25

For 2025, what is the standard catch-up contribution limit for a 401(k) participant who is age 50 or older (not ages 60 to 63)?

$1,000 $3,500 $7,500 $11,250

Question 5 of 25

Under SECURE 2.0, what is the higher 401(k) catch-up contribution limit for 2025 available to participants who are ages 60 to 63?

$7,500 $10,000 $11,250 $15,000

Question 6 of 25

At what age must most retirement account owners generally begin taking Required Minimum Distributions (RMDs) under current law?

70 1/2 72 73 75

Question 7 of 25

By what deadline must an account owner take their very first RMD for the year they reach age 73?

December 31 of the year they turn 73 April 1 of the year after they turn 73 April 15 of the year after they turn 73 June 30 of the year they turn 73

Question 8 of 25

Which type of account is NOT subject to Required Minimum Distributions during the original owner's lifetime?

Traditional IRA Roth IRA SEP IRA SIMPLE IRA

Question 9 of 25

What is the general additional tax rate on early distributions taken from a traditional IRA before age 59 1/2 when no exception applies?

5% 10% 20% 25%

Question 10 of 25

Before what age are IRA distributions generally considered early distributions subject to the 10% additional tax?

55 59 1/2 62 65

Question 11 of 25

How are taxable distributions from a traditional IRA generally taxed?

As long-term capital gains As ordinary income As tax-free income At a flat 15% rate

Question 12 of 25

Are contributions to a Roth IRA tax-deductible?

Yes, always fully deductible No, Roth IRA contributions are not deductible Yes, but only for taxpayers over age 50 Yes, but only up to 50% of the contribution

Question 13 of 25

What is a key tax advantage of a Roth IRA compared to a traditional IRA?

Contributions are always deductible Qualified distributions are tax-free Earnings grow tax-deferred but are always taxed when withdrawn There is no income limit on contributions

Question 14 of 25

To be a qualified tax-free Roth IRA distribution of earnings, the distribution generally must occur after age 59 1/2 and after what holding period?

A 1-year period A 3-year period A 5-year period A 10-year period

Question 15 of 25

How many days do you generally have to roll over a retirement plan or IRA distribution to another eligible plan to avoid taxation?

30 days 60 days 90 days 180 days

Question 16 of 25

How many IRA-to-IRA rollovers may an individual generally make in any 12-month period?

One, counting all IRAs in aggregate One per IRA account owned Two per year There is no limit

Question 17 of 25

Which type of fund movement between IRAs is NOT subject to the one-rollover-per-year limit?

A 60-day indirect rollover A trustee-to-trustee transfer A withdrawal then redeposit to the same IRA A distribution paid to the account owner

Question 18 of 25

Are amounts properly rolled over from one eligible retirement plan to another subject to the 10% additional tax on early distributions?

Yes, always No, properly rolled-over amounts are not subject to the 10% additional tax Only if the owner is under age 50 Only for Roth accounts

Question 19 of 25

What is the name of the tax credit that rewards eligible lower- and moderate-income taxpayers for contributing to a retirement account?

The Earned Income Tax Credit The Saver's Credit (Retirement Savings Contributions Credit) The Child Tax Credit The Foreign Tax Credit

Question 20 of 25

Which IRS form is used to figure the Saver's Credit?

Form 8606 Form 8880 Form 5329 Form 1099-R

Question 21 of 25

What are the possible credit rates for the Saver's Credit, depending on income and filing status?

10%, 20%, or 50% 5%, 15%, or 25% 25%, 50%, or 100% A flat 10%

Question 22 of 25

Who is NOT eligible to claim the Saver's Credit?

A worker contributing to a 401(k) A full-time student claimed as a dependent on someone else's return A self-employed person contributing to an IRA A married couple filing jointly within the income limits

Question 23 of 25

When are contributions to a traditional 401(k) plan generally taxed?

When contributed, with tax-free withdrawals later When distributed in retirement, as pre-tax contributions grow tax-deferred Never, all 401(k) money is tax-free Annually, as the account earns interest

Question 24 of 25

What additional tax rate applies to a distribution taken from a SIMPLE IRA within the first 2 years of participation, when no exception applies?

10% 15% 25% 50%

Question 25 of 25

For 2025, can an individual still make a regular contribution to a Roth IRA after reaching age 70 1/2, assuming they have eligible compensation and qualify under the income limits?

No, contributions must stop at age 70 1/2 Yes, Roth IRA contributions can be made at any age with eligible compensation Only if they take an RMD first Only up to half the normal limit