Retirement Accounts

Retirement Accounts

Assessment

Flashcard

Mathematics

12th Grade

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

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15 questions

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1.

FLASHCARD QUESTION

Front

What is a Traditional IRA?

Back

A Traditional IRA (Individual Retirement Account) is a retirement savings account where contributions are made with pre-tax dollars, meaning you do not pay taxes on the money until you withdraw it during retirement.

2.

FLASHCARD QUESTION

Front

What is a Roth IRA?

Back

A Roth IRA is a retirement savings account where contributions are made with after-tax dollars, meaning you pay taxes on the money before you invest it, and qualified withdrawals during retirement are tax-free.

3.

FLASHCARD QUESTION

Front

What is the main tax advantage of a Traditional IRA?

Back

The main tax advantage of a Traditional IRA is that contributions are tax-deductible, reducing your taxable income in the year you contribute.

4.

FLASHCARD QUESTION

Front

What is the main tax advantage of a Roth IRA?

Back

The main tax advantage of a Roth IRA is that qualified withdrawals are tax-free, allowing for tax-free growth on your investments.

5.

FLASHCARD QUESTION

Front

When is it beneficial to choose a Roth IRA over a Traditional IRA?

Back

It is beneficial to choose a Roth IRA if you expect to be in a higher tax bracket during retirement than you are currently.

6.

FLASHCARD QUESTION

Front

What is an Individual Retirement Account (IRA)?

Back

An Individual Retirement Account (IRA) is a type of savings account that is designed to help individuals save for retirement with tax advantages.

7.

FLASHCARD QUESTION

Front

What is a 401(k) plan?

Back

A 401(k) plan is an employer-sponsored retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

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