EA Dojo

Advising & Planning

Part 1 · 17 study cards · Active recall format

Q1.What is the general 2025 combined IRA contribution limit?

Exam wording

$7,000, or $8,000 for an individual age 50 or older, limited by taxable compensation and other applicable rules.

P1-U16Effective: 2026-2027Primary authority ↗
Q2.What is the general required beginning date for an IRA owner subject to the age-73 RMD rule?

Exam wording

April 1 of the year following the year the owner reaches age 73.

P1-U16Effective: 2026-2027Primary authority ↗
Q3.Recall the rule for this EA objective in Income And Assets: Comparison of and distributions from traditional and Roth IRAs

Exam wording

The distributions are generally fully taxable

P1-U16Effective: 2026-2027Primary authority ↗
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)

Exam wording

By a qualifying rollover of all or part to another eligible retirement plan

P1-U16Effective: 2026-2027Primary authority ↗
Q5.Recall the rule for this EA objective in Income And Assets: Excess contributions and tax treatment (e.g., penalties)

Exam wording

6%

P1-U16Effective: 2026-2027Primary authority ↗
Q6.Recall the rule for this EA objective in Income And Assets: Penalties and exceptions on premature distributions from qualified retirement plans and IRAs

Exam wording

10%

P1-U16Effective: 2026-2027Primary authority ↗
Q7.Recall the rule for this EA objective in Income And Assets: Prohibited transactions and tax consequences

Exam wording

The account stops being an IRA as of the first day of that year

P1-U16Effective: 2026-2027Primary authority ↗
Q8.Recall the rule for this EA objective in Income And Assets: IRA conversions and recharacterization (Form 8606)

Exam wording

No

P1-U16Effective: 2026-2027Primary authority ↗
Q9.Recall the rule for this EA objective in Income And Assets: Loans from qualified plans

Exam wording

On Form 1099-R, using the applicable distribution code

P1-U16Effective: 2026-2027Primary authority ↗
Q10.Recall the rule for this EA objective in Income And Assets: Inherited retirement accounts

Exam wording

The account must be fully distributed by the end of the tenth year after death

P1-U16Effective: 2026-2027Primary authority ↗
Q11.When may a traditional IRA contribution be deductible?

Exam wording

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

P1-U16Effective: 2026-2027Primary authority ↗
Q12.What are the basic Roth IRA contribution rules?

Exam wording

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

P1-U16Effective: 2026-2027Primary authority ↗
Q13.What is a required minimum distribution from a traditional IRA?

Exam wording

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

P1-U16Effective: 2026-2027Primary authority ↗
Q14.What is a prohibited transaction with an IRA?

Exam wording

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

P1-U16Effective: 2026-2027Primary authority ↗
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?

Exam wording

The earnings are taxable income in the year the excess contribution was made

P1-U16Effective: 2025Primary authority ↗
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?

Exam wording

April 15, 2026

P1-U16Effective: 2025Primary authority ↗
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?

Exam wording

$5,500

P1-U16Effective: 2025Primary authority ↗

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