Test your IRA knowledge by answering True or False to the statements below, and then check the answers to see how you did!
- You are unable to contribute to an IRA if you have reached the maximum contribution limit in your 401(k).
- You can contribute to both a Roth IRA and a Traditional IRA in the same year.
- A married couple filing jointly can combine their IRA funds into a jointly funded spousal IRA.
- You can start taking funds from your IRA at age 62, the same age you can begin to collect Social Security.
- The annual deadline to contribute to an IRA is December 31.
- A Traditional IRA will give you tax benefits now while a Roth IRA will provide you with tax benefits in retirement.
- APCI Federal Credit Union offers both Roth and Traditional IRAs with no annual maintenance fees.
- False: Maximum contributions to a 401(k) are entirely separate from maximum contributions to an IRA.
- True: You can contribute to both a Roth IRA and a Traditional IRA in the same year.
- 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.
- False: You can withdraw Traditional and Roth IRA funds at age 59 ½ or earlier with some exceptions.
- False: You can contribute to an IRA for a given calendar year up until the tax deadline of the following year.
- 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.
- 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.