Which exception to the 10% additional tax applies to a distribution from a qualified employer plan but NOT from an IRA?

Separation from service in or after the year the employee reaches age 55

First-time homebuyer expenses up to $10,000

Health insurance premiums paid after receiving 12 consecutive weeks of unemployment compensation

Qualified higher education expenses

For an IRA owner born in 1953, what is the required beginning date for required minimum distributions?

April 1 of the year after the year he turns 73

December 31 of the year he turns 75

December 31 of the year he turns 70 1/2

April 1 of the year after the year he turns 72

Which Roth IRA distribution is a qualified (tax-free) distribution?

A distribution after age 59 1/2, made at least five years after the first Roth IRA contribution year

Any distribution of earnings made at least one year after the contribution

A distribution for qualified college costs made two years after the first Roth IRA contribution year

An employee receives an eligible rollover distribution paid directly to her rather than transferred plan-to-plan. What must the plan withhold?

No withholding if she intends to roll it over

IRA and retirement plan distributions

Traditional IRA and plan distributions are taxable except for after-tax basis tracked on Form 8606; withdrawals before 59 1/2 add a 10% tax unless an exception applies, RMDs start at 73, and most non-spouse heirs must empty inherited accounts within 10 years.

Updated 2026-09-23 · 4 sources · By the EnrolledAgentKit team

Exam part

Part 1

Individuals

IRS domain

Income and Assets

17 of 85 scored Qs

Tax year tested

2025

2026-27 SEE

Practice questions

10 free below

The rules the exam tests

Figures for tax year 2025, the year the 2026-27 SEE tests. Verify against the cited primary source.
Rule	What it says (2025)	Source
IRA contribution limit 2025	$7,000 + $1,000 catch-up (50+)	Notice 2024-80
Early distribution tax	10% before 59 1/2 (25% for SIMPLE in first 2 years)	IRC 72(t)
Plan-only exception	Separation from service in/after the year you turn 55	IRC 72(t)(2)(A)(v)
IRA-only exceptions	Higher education, first home ($10,000 lifetime), unemployed health premiums	IRC 72(t)(2)
RMD start	Age 73 (born 1951-1959); first RMD by April 1 of the next year	IRC 401(a)(9)
Missed RMD	25% excise (10% if timely corrected), Form 5329	IRC 4974
Rollovers	60 days; one IRA-to-IRA indirect rollover per 12 months; 20% withholding on plan checks	IRC 408(d)(3), 3405(c)
Roth qualified distribution	5-year rule + 59 1/2, death, disability or first home	IRC 408A(d)
Inherited IRA (non-EDB)	Empty by end of 10th year after death	IRC 401(a)(9)(H)
QCD 2025	Up to $108,000 from IRA at 70 1/2+	IRC 408(d)(8)

Worked example

Facts: Joe has $20,000 of nondeductible basis in his traditional IRAs. In 2025 he converts $10,000 to a Roth; year-end traditional IRA value is $70,000.

Form 8606 pro-rata: $20,000 / ($70,000 + $10,000) = 25% nontaxable. Taxable conversion = $10,000 x 75% = $7,500. His remaining basis is $17,500. No 10% tax applies to a conversion itself.

Exam traps

The age-55 exception does not apply to IRAs.
All traditional, SEP and SIMPLE IRAs are aggregated for the pro-rata rule.
Conversions can no longer be recharacterized.
Trustee-to-trustee transfers are not limited by the once-per-year rollover rule.