Investments - Retirement & ETFs

Traditional IRA contributions are

• taxed at time of contribution and when withdrawn

• never taxed

• taxed at time of contribution

• tax deferred until contributions are withdrawn

A ROTH IRA

• requires that you take distributions at age 70 1/2

• requires that you take distributions at age 59 1/2

• does not require you take distributions at any age

A traditional IRA lowers your taxable income in the contribution year.

• true

• false

The contribution limit for a traditional or ROTH IRA for 2023 is

• $6,500 (or $7,500 if over age 50)

• $30,000

• $22,500

A qualified employer-sponsored retirement plan that eligible employees may make salary-deferred contributions to with tax advantages is a

• traditional IRA

• ROTH IRA

• 401k

• 403b

Investment vehicle used by non-profit companies, religious groups, school districts and government organizations is a

• traditional IRA

• ROTH IRA

• 401k

• 403b

Withdrawals taken from a 401k or 403b before age 59 1/2

• are subject to a 10% penalty

• are subject to a 50% penalty

• are subject to no penalty

Must take distribution (make withdrawals) at age 70 ½ and no more contributions may be made after age 70 ½ (even if employed) with a

• 403b

• 401k

• Traditional IRA

• ROTH IRA

403b and 401k contributions are

• taxed at time of contribution and when withdrawn

• never taxed

• taxed at time of contribution

• tax deferred until contributions are withdrawn

The contribution limit for a 401k or 403b for 2023 will be

• $6,500 (or $7,500 if over age 50)

• $22,500

• $20,500