Retirement Accounts

Retirement Accounts

Assessment

Flashcard

Mathematics

12th Grade

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

Student preview

quiz-placeholder

15 questions

Show all answers

1.

FLASHCARD QUESTION

Front

What is a Roth IRA?

Back

A Roth IRA is a retirement savings account that allows individuals to contribute after-tax income, meaning contributions are made with money that has already been taxed. Withdrawals during retirement are tax-free, provided certain conditions are met.

2.

FLASHCARD QUESTION

Front

What is a Traditional IRA?

Back

A Traditional IRA is a retirement savings account that allows individuals to contribute pre-tax income, which can reduce taxable income in the year of contribution. Taxes are paid upon withdrawal during retirement.

3.

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. Employers may also match contributions.

4.

FLASHCARD QUESTION

Front

What is a 457(b) plan?

Back

A 457(b) plan is a non-qualified, tax-advantaged retirement savings plan available for governmental and certain non-governmental employers. It allows employees to defer compensation and save for retirement.

5.

FLASHCARD QUESTION

Front

What is the minimum withdrawal age for retirement accounts?

Back

The minimum withdrawal age for retirement accounts like 401(k), IRA, and 403(b) is 73 years old.

6.

FLASHCARD QUESTION

Front

What is the benefit of starting to save for retirement early?

Back

Starting to save for retirement early allows individuals to take advantage of compound interest, which can significantly increase the total savings over time.

7.

FLASHCARD QUESTION

Front

What is the difference between a Roth IRA and a Traditional IRA?

Back

The main difference is when taxes are paid: Roth IRA contributions are made with after-tax dollars, while Traditional IRA contributions are made with pre-tax dollars.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?