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IRAs: contributions, basis, Roth and conversions

SEE 1 Chapter 11 · IRS outline 2B1, 2B2, 2B4, 2B6, 2B7, 2D2

IRAs look simple: put money in, take it out later. The SEE tests what happens in between. Can Lily deduct her contribution with a 401(k) at work? What part of Hank's withdrawal is tax-free because of old nondeductible money? Can Grace still fund a Roth? What if Daniel put in too much, or borrowed from his IRA to buy a van? Nadia teaches the IRA as one ledger: money in, basis tracked, money out.

In this chapter

1. Traditional IRA contributions and the deduction
2. Basis in a traditional IRA and Form 8606
3. Roth IRAs
4. Conversions, recharacterizations and rollovers
5. Excess contributions and prohibited transactions
6. Workplace and self-employed plan limits

This chapter has 6 lessons and 67 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Contribution limits and deductibility
• Form 8606 basis
• Roth rules
• excess contributions
• prohibited transactions
• conversions and recharacterization

Chapter 10: Foreign income and the foreign tax credit · Chapter 12: Retirement distributions, RMDs, inherited accounts and Social Security