IRAS and Roth IRAS

Question 1

Contribution limits for IRAs 50 and younger

Answer 1

2022- 6,000
2023 6,500

Question 2

Contribution limits for IRAS 50 and older

Answer 2

2022 - 7000
2023 - 7,500

Question 3

In a traditional IRA, contributions are deductible if

Answer 3

you are not an active participant in an ER qual plan
you are single tax filer with agi < 68k (73k in 2023)
you are married filing jointly with agi < 109k (116k in 2023)

Question 4

If you breach the contribution agi limit, you begin to be

Answer 4

phased out

Question 5

phase out zone for single filers

Answer 5

68-78,000 (10k)

Question 6

phase out zone for married joint filers

Answer 6

109 - 129,000 (20k)

Question 7

phase out zone when married filing joint when only one spouse has earned income

Answer 7

204k - 214k (10k)

Question 8

Roth Iras characteristics

Answer 8

non deductible contributions
income tax free distributions
limited contributions based on AGI

Question 9

Why does a rollover from a traditional ira to roth create a tax burden

Answer 9

it creates income because a trad ira is pre tax and roth has to be post tax $

Question 10

Advantages of roth IRA

Answer 10

contributions can be withdrawn tax and penalty free
growth subject to tax and penalty when withdrawn but distributions are tax free and penalty free in specific occasions

Question 11

distributions are tax free and penalty free when

Answer 11

indiv is > 591/2 or is dead/disabled/first time homeowner AND distribution is after a 5 yr taxable period

Question 12

investment options for an IRA

Answer 12

cash stock bonds gold silver platinum

Question 13

inelligible investment options

Answer 13

life insurance, collectibles, other coin

Question 14

disadvantages of rollovers

Answer 14

unrealized appreciation
loan ability
erisa protection