SENIOR TAX ANALYST CERTIFICATION TEST 2017
Question 1
Ted, age 41, files single. He earned $52,875 in wages and had no other income in 2017. On
April 14 of 2018, he filed for an automatic six-month extension to file his tax return. Three
weeks later, on May 5, he timely filed his 2017 tax return. Which statement best describes his
eligibility to contribute to an IRA on May 5?
A) Because he did not make the contribution before the due date for the tax return, he is not
eligible to make an IRA contribution for 2017.
B) Because he did not file his tax return by the due date, he is only eligible to contribute to a
Roth IRA for 2017.
C) Because he did not file his tax return before the due date but did file it before the
extension due date, he is eligible to make half the maximum IRA contribution for 2017.
D) He is eligible to make the maximum IRA contribution because he filed his 2017 tax return
before the extension due date.
Answer: A) Because he did not make the contribution before the due date for the tax return,
he is not eligible to make an IRA contribution for 2017.
Question 2
When Miles separated from service with his former employer, he had a $10,000 outstanding
balance in an employer plan loan. He received a total distribution of $30,000 without regard
to the loan. The check he received was for $14,000. Mandatory withholding was $6,000.
How much of the distribution is taxable?
A) $10,000
B) $14,000
C) $20,000
D) $30,000
Answer: D) $30,000
Question 3
Question 1
Ted, age 41, files single. He earned $52,875 in wages and had no other income in 2017. On
April 14 of 2018, he filed for an automatic six-month extension to file his tax return. Three
weeks later, on May 5, he timely filed his 2017 tax return. Which statement best describes his
eligibility to contribute to an IRA on May 5?
A) Because he did not make the contribution before the due date for the tax return, he is not
eligible to make an IRA contribution for 2017.
B) Because he did not file his tax return by the due date, he is only eligible to contribute to a
Roth IRA for 2017.
C) Because he did not file his tax return before the due date but did file it before the
extension due date, he is eligible to make half the maximum IRA contribution for 2017.
D) He is eligible to make the maximum IRA contribution because he filed his 2017 tax return
before the extension due date.
Answer: A) Because he did not make the contribution before the due date for the tax return,
he is not eligible to make an IRA contribution for 2017.
Question 2
When Miles separated from service with his former employer, he had a $10,000 outstanding
balance in an employer plan loan. He received a total distribution of $30,000 without regard
to the loan. The check he received was for $14,000. Mandatory withholding was $6,000.
How much of the distribution is taxable?
A) $10,000
B) $14,000
C) $20,000
D) $30,000
Answer: D) $30,000
Question 3
