Retirement

Which of these accounts do you set up at a brokerage firm or other financial institution?

• 401(k)

• Pension

• IRA

• Social Security

Which of the accounts below is your contribution directly taken out of your paycheck by your employer?

• 401(k)

• IRA

Which type of retirement account is an investment option for ANY young person entering the full-time work force?

• Traditional IRA

• Pension

• 401(k)

• Trick question -- you canʻt invest in retirement until you become vested

In what type of retirement account might an employer "match" your contributions?

• Traditional IRA

• 401(k)

• Roth IRA

• Pension

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

• 401(k)

• IRA

• Pension

• Roth IRA

What is considered to be "retirement" age for 401(k)s and IRAs? (can withdraw money without penalty)

• 50

• 59 1/2

• 65

• 70 1/2

If you have a 401(k) or IRA,

• you can access the funds at any time, even though you pay a penalty to do so.

• you cannot access the funds until you officially retire.

• it is a good strategy to borrow frequently from it.

• your opportunity cost for borrowing from it is very low.

What is one strategy that you can use to save money for retirement?

• Put a little money into retirement each month.

• Spend every dollar you have.

• Do not put money into a retirement account.

• None of the above three choices are correct.

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

• Both accounts have the same tax treatment.

• Traditional IRA earnings are tax-free, while Roth IRA earnings are taxed.

• Roth IRA contributions are made with after-tax dollars, while Traditional IRA contributions are made with pre-tax dollars.

• Roth IRA is only available to people over 65.

Which of the following actions can negatively impact your retirement savings?

• Making regular contributions to your retirement account.

• Withdrawing funds early and paying penalties.

• Taking advantage of employer matching programs.

• Investing in a diversified portfolio.