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IRS Special Enrollment Examination (SEE) for Enrolled Agents

2. Income and assets: practice questions

Our Enrolled Agent (SEE) bank has 82 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

For 2025, a single filer cannot contribute to a Roth IRA at all once modified AGI reaches:

  1. $146,000
  2. $150,000
  3. $246,000
  4. $165,000
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D. $165,000 — The 2025 Roth phase-out for single and head of household filers runs from $150,000 to $165,000. For joint filers it is $236,000 to $246,000.

Question 2

For 2025, the student loan interest deduction is limited to:

  1. $2,500 per student
  2. $2,500 per return
  3. $1,500 per return
  4. $4,000 per return
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B. $2,500 per return — The maximum is $2,500 per return, phased out between $85,000 and $100,000 of MAGI ($170,000-$200,000 joint). Married filing separately cannot claim it.

Question 3

Can a 2025 Roth conversion be recharacterized back to a traditional IRA?

  1. Only if the conversion was over $10,000
  2. No, recharacterizing conversions is not allowed after 2017
  3. Yes, within 60 days
  4. Yes, by the due date of the return, including any extensions granted
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B. No, recharacterizing conversions is not allowed after 2017 — The Tax Cuts and Jobs Act removed the ability to recharacterize Roth conversions. Regular contributions can still be recharacterized by the due date including extensions.

Question 4

Which IRA transaction is a prohibited transaction?

  1. Converting the IRA to a Roth IRA before age 59½
  2. Using the IRA as security for a personal loan
  3. Rolling over a 401(k) into the IRA
  4. Taking a distribution at age 60
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B. Using the IRA as security for a personal loan — Borrowing from the IRA, pledging it as security, selling property to it or using it for personal benefit are prohibited transactions. Pledging part of an IRA treats that part as distributed.

Question 5

A 401(k) participant takes a direct rollover of her account to a traditional IRA. What is the tax effect?

  1. None; the rollover is not taxed and no tax is withheld
  2. The amount is taxed in full but no early distribution penalty applies
  3. Only the employer contributions are taxed
  4. 20% is withheld but refunded at filing
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A. None; the rollover is not taxed and no tax is withheld — A direct trustee-to-trustee rollover is not taxable and is not subject to the mandatory 20% withholding that applies to eligible rollover distributions paid to the participant.

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