Retirement and Investments

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 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

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

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

• Traditional IRA

• Roth IRA

• 401K

• Pension

What account is a good idea if you are in a lower tax bracket than you will be at retirement?

• Traditional IRA

• Roth 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

Which has less risk?

• Bonds

• Stocks

What is 3.2% expressed as a decimal?

• .032

• 3.2

• 32

• 5