P1-U16 · PART 1 · SOURCE CYCLE 2026-2027
Individual Retirement Accounts
How to complete this unit
This unit uses 17 source-gated recall cards and 17 admissible practice questions. Complete the sequence in order; the unreleased wiki prose remains outside the learner path.
- 1 · LearnBuild the rule
Answer each recall prompt before opening it. Then learn the exact rule, test the controlling facts through four quick challenges, explore common questions, and finish with one own-words teach-back.
- 2 · ApplyUse it in context
Complete at least 17 mapped questions over two sessions. Review the explanation even when the answer is correct.
- 3 · ProveTest readiness
Use the Part 1 mock under time pressure. Return here for every flagged or missed concept before the next attempt.
Verified recall questions
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here. Stable unit ownership gathers this lesson across 1 textbook collection.
Q1.What is the general 2025 combined IRA contribution limit?
$7,000, or $8,000 for an individual age 50 or older, limited by taxable compensation and other applicable rules.
Q2.What is the general required beginning date for an IRA owner subject to the age-73 RMD rule?
April 1 of the year following the year the owner reaches age 73.
Q3.Recall the rule for this EA objective in Income And Assets: Comparison of and distributions from traditional and Roth IRAs
The distributions are generally fully taxable
Q4.Recall the rule for this EA objective in Income And Assets: Distributions from qualified and non-qualified plans (e.g., pre-tax, after-tax, rollovers, Form 1099R, qualified charitable distribution)
By a qualifying rollover of all or part to another eligible retirement plan
Q5.Recall the rule for this EA objective in Income And Assets: Excess contributions and tax treatment (e.g., penalties)
6%
Q6.Recall the rule for this EA objective in Income And Assets: Penalties and exceptions on premature distributions from qualified retirement plans and IRAs
10%
Q7.Recall the rule for this EA objective in Income And Assets: Prohibited transactions and tax consequences
The account stops being an IRA as of the first day of that year
Q8.Recall the rule for this EA objective in Income And Assets: IRA conversions and recharacterization (Form 8606)
No
Q9.Recall the rule for this EA objective in Income And Assets: Loans from qualified plans
On Form 1099-R, using the applicable distribution code
Q10.Recall the rule for this EA objective in Income And Assets: Inherited retirement accounts
The account must be fully distributed by the end of the tenth year after death
Q11.When may a traditional IRA contribution be deductible?
deductibility depends on whether the taxpayer or spouse is covered by a workplace retirement plan and on modified AGI phaseouts if neither spouse is covered, contributions within limits are generally fully deductible nondeductible contributions are still permitted within the contribution limit and require basis tracking
Q12.What are the basic Roth IRA contribution rules?
contributions are not deductible qualified distributions of earnings are tax-free when age and five-year tests are met eligibility and the maximum contribution are subject to modified AGI limits a taxpayer needs taxable compensation to contribute
Q13.What is a required minimum distribution from a traditional IRA?
account owners must begin RMDs by the required beginning date under current law the annual RMD is generally based on account value and life-expectancy tables failure to take an RMD can trigger an excise tax on the shortfall unless a waiver applies
Q14.What is a prohibited transaction with an IRA?
improper transactions between the IRA and a disqualified person, such as certain sales, loans, or personal use of IRA assets a prohibited transaction can disqualify the IRA as of the first day of the year the account is generally treated as distributing its assets at fair market value on that day
Q15.Julie accidentally overcontributes to her traditional IRA in 2025. She does manage to correct the overcontribution by the filing deadline. However, there were $50 in earnings on the overcontributed amounts. What happens to the earnings on the excess contribution?
The earnings are taxable income in the year the excess contribution was made
Q16.Lainey e-files her 2025 tax return early, on February 27, 2026. She wants to take a tax deduction for a $7,000 IRA contribution on her return. Assuming that she does so, what is the latest date that she can make a traditional IRA contribution for the 2025 tax year?
April 15, 2026
Q17.Damon, age 50, is unmarried and permanently disabled with Down's syndrome. Damon is claimed as a dependent by his sister, Betty, who he lives with, and provides the majority of his financial support. Damon earns $5,500 in wages during 2025working in a sheltered workshop. He also receives $500 of interest income and a $4,000 in gambling income from a scratch off ticket that his sister gave him for his birthday. What is his maximum IRA contribution in 2025?
$5,500
Ready to move on?
- ▸ Explain at least 80% of these 17 rules without opening the answer, twice on different days.
- ▸ Score 80% across 17 or more mapped questions over two sessions, not one memorized round.
- ▸ Complete a timed Part 1 mock and return to this unit if its concepts remain flagged or missed.
Use these checks to choose your next study action. They do not predict a PSI scaled score.