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Roth IRA Contribution Limits Trivia

(November 10th, 2008)

This trivia will quiz you on the concepts explained in the article Roth IRA Contribution Limits - Roth & Traditional IRA Contribution Deadlines, Limits, Important Dates to Note, Types of Compensation, Roth IRA & Traditional IRA Income Phaseout Ranges For Contributions If there is any question you do not understand, it is advised to refer to that page for explanation. After selecting your answers, choose the "Grade Me!" button at the bottom to know your result & the right answers.

1) The April 15th deadline for filing taxes to the IRS is also the deadline for investors to make their final Roth IRA & Traditional IRA contributions for that tax year.
a) True
b) False

2) If you have already filed your taxes before the April 15th deadline and have not made Roth IRA contributions, you can do so and file an amended tax return using
a) Form 0106
b) Form 1105
c) Form 1040
d) Form 720

3) Contributions to a Roth or Traditional IRA must be made through eligible incomes which comprise of the following:
a) Earned wages or taxable compensation
b) Salaries, commissions, taxable alimonies
c) Professional fees, tips & bonuses
d) All of the above

4) The Traditional IRA is available to all with no income restrictions or contribution phaseouts. However, the Roth IRA is subject to income & contribution phaseouts limiting the amount of money you can contribute towards a Roth IRA if your income exceeds certain levels.
a) True
b) False

5) What is the Roth IRA Income Phaseout Range for Singles & Head of Households?
a) $97,000 - $110,000
b) $98,000 - $112,000
c) $99,000 - $114,000
d) $100,000 - $115,000

6) What is the Roth IRA contribution limit for 2008?
a) $4000
b) $5000
c) $6000
d) $6500

7) What is the Simple IRA contribution limit for 2008?
a) $9000
b) $10,000
c) $11,000
d) $12,000

8) What is the Roth IRA Income Phaseout Range for Married & Filing Jointly couples?
a) $155,000 - $164,000
b) $154,000 - $163,000
c) $152,000 - $161,000
d) $156,000 - $166,000

9) For those investors contributing towards a Traditional IRA and already participating in an employer sponsored 401(k) or 403(b), their IRA contribution deductions are phased out quicker than those who don't participate in such plans.
a) True
b) False

10) What is the Traditional IRA Income Phaseout Range for Married & Filing Jointly couples?
a) $159,000 - $169,000
b) $161,000 - $171,000
c) $163,000 - $173,000
d) $165,000 - $175,000

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401k Articles

> Roth IRA Contribution Limits Trivia
This trivia will quiz you on the concepts explained in the article Roth IRA Contribution Limits - Roth & Traditional IRA Contribution Deadlines, Limits, Important Dates to Note, Types of Compensation, Roth IRA & Traditional IRA Income Phaseout Ranges For Contributions

> Roth IRA Contribution Limits - Roth & Traditional IRA Contribution Deadlines, Limits, Important Dates to Note, Types of Compensation, Roth IRA & Traditional IRA Income Phaseout Ranges For Contributions

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401k Interesting Facts

-> Roth 401k is voluntary for employers. In order to offer Roth 401k for their employees, employers have to set up a tracking system that segregates Roth assets from the company's existing plan. This tracking system is expensive to build and maintain, and employers may not choose to do it at all. If so, your employer will not be eligible to offer Roth 401k.

-> Upto $10,000 can be withdrawn from a Roth IRA without any penalty if the owner wishes to purchase a home or principal residence. The home must be purchased by either the Roth IRA owner, his spouse, ancestors or descendants. Also, the Roth IRA owner must not have previously owned a home for atleast 24 months.

-> Roth 401k Works Best if:

- The federal government increases taxes over time
- You are a high income earner who has a compensation cap on Roth IRAs (maximum compensation cap of $225,000 in 2007)
- The mutual funds or stocks where you put your Roth 401k capital experience significant returns
- You are a young investor and need more time for your account to grow across various investments such as mutual funds, stocks, commodities, etc.
- You are in a lower tax bracket now and will be in a higher tax bracket upon retirement.

401k Contribution Limits

2005 $14,000 $18,000
2006 $15,000 $20,000
2007 $15,000 $20,500
2008 $15,500 $20,500

Roth IRA Contribution Limits

2002 $3000 $3500
2003 $3000 $3500
2004 $3000 $3500
2005 $4000 $4500
2006 $4000 $5000
2007 $4000 $5000
2008 $5000 $6000

Simple 401k / IRA Contribution Limits

Year
Annual Contribution Limits
2002 $7000
2003 $8000
2004 $9000
2005 $10,000
2006 $10,000
2007 $10,500
2008 $11,000

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