Retirement Plans ASSESSMENT

What is an IRA?

• The government organization that is in charge of managing retirement funds.
• a type of savings account that is designed to help you save for retirement and offers many tax advantages. 
• A fund that allows employees to save for college or other short term expenses
• A type of mortgage that is interest free

Retirement is what type of wealth building?

• Long-Term
• Short-Term

Assume you are 22 years old, have up to $5,000 to invest annually toward retirement. However, your employer is not providing a match or a retirement plan. Select the best financial product for you.

• IRA
• 401K or Company matching plan
• Savings account
• Car

A retirement savings plan offered by a corporation to its employees; the employee contributes money from his/her gross pay, and the money grows tax deferred. Often times the company will match to certain percentage.

• IRA
• 401(k)
• Share
• Mutual Fund

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

• A Roth IRA is tax free, a Traditional IRA is tax deductible 
• A Traditional IRA is managed by the government, a Roth IRA is managed by a private company
• A Roth IRA is only available to military and public service employees
• There is no difference, just the name

A federally-approved, tax-deferred savings program for self-employed people, allowing them to set money aside for their retirement.

• Tax sheltered annuity
• Keogh Plan
• 401K

 ____________is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers.

• 401K
• Social security
• TSA (tax sheltered annuity) / 403 B
• Keogh Plan

an account for saving from retirement which has many tax benefits

• Individual Retirement Account (IRA)
• Traditional IRA
• asset allocation
• Simplified Employee Pension (SEP IRA)

contribution by an employer to an employee's retirement account that matches the dollar amount contributed by the employee

• matching contribution
• vesting schedule
• distribution
• Savings Incentive Match Plans for employee (SIMPLE IRA)

a type of IRA; contributions are NOT tax deductible, but earnins and withdrawals are tax free

• Roth IRA
• distribution
• mutual fund
• actuary