IRA Quiz

Test your IRA knowledge by answering True or False to the statements below, and then check the answers to see how you did!
 

1. You are unable to contribute to an IRA if you have reached the maximum contribution limit in your 401(k).
2. You can contribute to both a Roth IRA and a Traditional IRA in the same year.
3. A married couple filing jointly can combine their IRA funds into a jointly funded spousal IRA.
4. You can start taking funds from your IRA at age 62, the same age you can begin to collect Social Security.
5. The annual deadline to contribute to an IRA is December 31.
6. A Traditional IRA will give you tax benefits now while a Roth IRA will provide you with tax benefits in retirement.
7. APCI Federal Credit Union offers both Roth and Traditional IRAs with no annual maintenance fees.

Answers

1. False: Maximum contributions to a 401(k) are entirely separate from maximum contributions to an IRA.
2. True: You can contribute to both a Roth IRA and a Traditional IRA in the same year.
3. False: There are no jointly funded spousal IRAs. (However, there is a spousal IRA.) A married couple’s IRA funds cannot be combined in the same account.
4. False: You can withdraw Traditional and Roth IRA funds at age 59 ½ or earlier with some exceptions.
5. False: You can contribute to an IRA for a given calendar year up until the tax deadline of the following year.
6. True: Traditional IRA contributions are before-tax dollars, meaning that they are tax-deductible contributions that you must pay taxes on upon withdrawal. Roth contributions are after-tax dollars, meaning that you pay taxes now, but can withdraw earnings tax-free at retirement.
7. True: If you have any questions, please call 800-821-5104, ext. 2840 for Al Kauffman, Certified IRA Professional, or ext. 2876 for Michelle Roxbury, Certified IRA Professional.