Investing for Retirement

Contributions to which type of IRA are tax deductible?

• Traditional IRA

• Roth IRA

What is the official retirement age, according to the US government?

• 59

• 70

• 67

What is one key advantage to an employer-sponsored retirement plan?

• Your employer must match any contributions you made

• A debt collector can't take your money from this plan

• You can withdraw your money at any time without penalty

True or False: You may contribute as much of your earnings as you choose to your employer-sponsored retirement plan each year.

• True

• False

Which of the following is a benefit of an employer-sponsored plan?

• Contributions are not taxed

• Employers often match contributions

• All of the above

401K plans are so named because:

• You can only contribute up to $401,000

• Of the tax law that authorizes them

• Over 400,000 people have taken advantage of them

A key difference between an IRA and Keogh plan is:

• You may withdraw your money early from a Keogh plan without penalty, but not from an IRA

• You may contribute more to a Keogh plan than to an IRA

• Self-employed individuals may open an IRA, but not a Keogh.

When should you begin saving for retirement?

• As soon as you enter the workforce

• Before the age 50

• After age 50

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

• 401(k)

• Keogh plan

• Both a and b

What happens in your retirement if you have a lapse in your years of work history?

• Nothing. Your monthly benefit is determined based only on age

• You will forfeit your retirement benefit

• Your monthly benefit will be lower