Review - Retirement

Which of the following is an example of a defined benefit retirement plan?

• 401k

• IRA

• Pension

Which of the following is an example of a defined contribution benefit plan?

• 401k

• IRA

• Pension

Tax-deferred means...

• You do not have to pay income tax on the money until you begin to withdraw it at retirement

• You pay income tax on the retirement contributions when you deposit them

What is considered to be "retirement" age, when it is acceptable to begin taking IRA distributions without penalty?

• 50

• 59 1/2

• 65

• 70 1/2

What is the maximum amount you are allowed to contribute to your IRA each year if you are 45 years old?

• $1000

• $2500

• $5000

• $6000

What is NOT a reason you can take an early withdrawal from your IRA without penalty?

• Down payment on your first home

• To pay for higher education

• To pay taxes owed to the IRS

• To pay for unreimbursed medical expenses

Which IRA requires its owners to begin taking distributions at age 70 1/2?

• Traditional

• Roth

Which type of IRA has contributions that are tax-deferred?

• Traditional

• Roth

At what age are you required to begin taking distributions from your Roth IRA?

• 65

• 59 1/2

• 70 1/2

• Never

If you leave a company before the required minimum of years to retain your pension, what happens to the money?

• You receive 1/2 of it when you leave the company

• You receive 1/3 of it when you leave the company

• You receive all of the money and can roll it into your new retirement plan

• You don't receive any of the money