Unit 8 - Retirement Quiz

Which of the below is an employer based retirement plan that both employees and employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension

Which of the below is an employer based retirement plan that only employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension

What is the difference between a Traditional and Roth IRA?

• A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.

• A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.

Which of these accounts will NOT change if you switch jobs?

• IRA

• 401K

• Pension

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

• 401K

• IRA

Which type of account will your employer often "match" your contributions?

• Traditional IRA

• 401K

• Roth IRA

• Pension

The money put into this type of account has already had taxes taken out.

• Pension

• 401K

• Roth IRA

• Traditional IRA

What type of account allows for instant diversification?

• mutual fund

• stock

• bond

A bond is a(n) _____________ instrument.

• Equity

• Debt

A stock is a(n) _________ instrument.

• Equity

• Debt