7.1 Types of Retirement Plans Lesson

7.1 Types of Retirement Plans Lesson

Open Ended

What do you think retirement means?

Multiple Choice

The period of life after ending a working or professional career is ____________.

• retirement

• the after life

• employment

• unemployment

Multiple Choice

Vesting is...

• Process of determining when a person retires.

• Process of determining when money that has been set aside in a retirement plan belongs to an employee.

• Process of determining which job is right for a new person in a company.

Two categories of employer sponsored retirement plans are...

• defined-benefit plan

• defined-contribution plan

Multiple Choice

A defined-benefit plan...

• Retirement plan in which the employee and/or employer contributes to the employee’s individual account under the defined plan.

• Retirement plan that makes regular payments, usually monthly, to a retiree until death.

• Retirement plan in which the employee does not contribute to a retirement fund.

Multiple Choice

Which type of retirement plan is sometimes called a pension plan?

• defined-benefit plan

• defined-contribution plan

• 401(k) plan

• Roth IRA

Multiple Choice

A defined-contribution plan...

• Retirement plan in which the employee and/or employer contributes to the employee’s individual account under the defined plan.

• Retirement plan that makes regular payments, usually monthly, to a retiree until death.

• Retirement plan in which the employee does not contribute to a retirement fund.

Multiple Choice

An employer-sponsored retirement plan that allows an individual to deposit part of his or her earnings

into a tax-deferred investment is a(n) ______ plan.

• defined-contribution plan

• defined-retirement plan

• 401K plan

Multiple Choice

A(n) ______ plan is available to employees of nonprofit organizations

such as public schools.

• 403b plan

• 401k plan

• defined-contribution plan

Multiple Choice

A type of defined-contribution plan that does not have RMD rules and is available primarily to

governmental employees is a(n) ______ plan.

• 403b plan

• 401k plan

• 457 plan

Multiple Choice

Which type of defined-contribution plan is an employer-sponsored plan in which contributions are made with after-tax earnings, but withdrawals are not taxed?

• 403b plan

• 401k plan

• 457 plan

• Roth 401k plan

Multiple Choice

A personal account for setting money aside for retirement is called an _________.

• individual retirement account (IRA)

• social security

• 403b plan

• savings account

Multiple Choice

A type of account that allows a working spouse to contribute to the retirement savings of a nonworking

spouse is a(n) spousal IRA.

• True

• False

Multiple Choice

The main difference between a traditional IRA and a Roth IRA is when the contributions or withdrawals are taxed

• True

• False

Multiple Choice

A(n) _________________ is a contract with an insurance company that provides regular income for a set period of time.

• Traditional IRA

• Roth IRA

• annuity

• social security

Multiple Choice

Which retirement plan is used by people who are self employed?

• 403b plan

• Solo 401k plan

• 401k plan

Multiple Choice

Social Security is

• a pension plan run by the federal government.

• an individual retirement account.

• protection for the president.

Multiple Choice

A person born in 1960 or later is eligible for full Social Security benefits at what age?

• 60

• 65

• 67

• 70