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Special Enrollment Examination
Part 1SEE Part 1: Individuals✓Part 2SEE Part 2: BusinessesPart 3SEE Part 3: Representation, Practices and ProceduresIncome and Assets
How distributions from traditional and Roth IRAs, employer plans and annuities are taxed, when the 10% additional tax applies, how rollovers, RMDs and inherited accounts work, and how much of a Social Security benefit is taxable. The SEE mixes recall of limits and codes with short computations.
Income and Assets5 min read7 sections
Retirement distributions appear on almost every older client's return. The SEE asks which part is taxable, whether the 10% additional tax applies, and what a rollover, conversion or inherited account requires. Several limits changed under SECURE 2.0, and old figures (the 50% RMD penalty, age 72) are common distractors.
The 2025 IRA contribution limit is $7,000, or $8,000 at age 50 or older (Pub. 590-A (2025)).
| 2025 phase-out | MAGI range | Authority |
|---|---|---|
| Traditional IRA deduction, single or HOH, covered by a plan | $79,000-$89,000 | IRC 219(g) |
| Traditional IRA deduction, MFJ, contributor covered | $126,000-$146,000 | IRC 219(g) |
| Traditional IRA deduction, MFJ, only the spouse covered | $236,000-$246,000 | IRC 219(g)(7) |
| Roth contribution, single or HOH | $150,000-$165,000 | IRC 408A(c)(3) |
| Roth contribution, MFJ | $236,000-$246,000 |
Every note. Every question. One pass.
5 more sections of this note are part of Premium.
From about US$12.42/mo on the Until-you-pass pass (12 months)
| IRC 408A(c)(3) |
| Either, MFS who lived with spouse | $0-$10,000 | Pub. 590-A (2025) |
Example: a covered single filer with MAGI of $85,250 is $6,250 into a $10,000 range, so the deduction is $7,000 x 3,750/10,000 = $2,630 (rounded up to the next $10). The rest is nondeductible basis on Form 8606.