Retirement Income Quiz

What is a 401(k) plan?

• A 401(k) plan is a type of loan provided by banks.

• A 401(k) plan is a government assistance program for low-income individuals.

• A 401(k) plan is a retirement savings plan sponsored by an employer.

• A 401(k) plan is a type of health insurance plan.

When can you start receiving Social Security benefits?

• You can start receiving Social Security benefits as early as age 60.

• You can start receiving Social Security benefits as early as age 65.

• You can start receiving Social Security benefits as early as age 62.

• You can start receiving Social Security benefits as early as age 70.

What is a pension plan?

• A pension plan is a retirement plan that provides a regular income to employees after they retire.

• A pension plan is a type of insurance that provides coverage for medical expenses after retirement.

• A pension plan is a savings account that individuals contribute to for their retirement.

• A pension plan is a government program that provides financial assistance to retired individuals.

What is an annuity?

• A type of insurance policy that provides coverage for medical expenses.

• A legal document that transfers property or assets to a beneficiary after the owner's death.

• A financial product that provides regular payments over a specified period of time.

• A type of investment that guarantees a fixed rate of return over a specified period of time.

What does IRA stand for?

• Internal Revenue Agency

• Individual Retirement Account

• Investment Retirement Account

• International Retirement Association

How are 401(k) contributions taxed?

• 401(k) contributions are taxed at a higher rate than regular income.

• 401(k) contributions are tax-deferred.

• 401(k) contributions are subject to capital gains tax.

• 401(k) contributions are tax-exempt.

What is the full retirement age for Social Security benefits?

• The full retirement age for Social Security benefits is 65 years old.

• The full retirement age for Social Security benefits is 70 years old.

• The full retirement age for Social Security benefits is 62 years old.

• The full retirement age for Social Security benefits is between 66 and 67 years old.

What is the purpose of a pension plan?

• The purpose of a pension plan is to provide individuals with a tax deduction during their working years.

• The purpose of a pension plan is to provide individuals with a lump sum of money upon retirement.

• The purpose of a pension plan is to provide individuals with healthcare benefits during retirement.

• The purpose of a pension plan is to provide individuals with a regular income during retirement.

What is the main advantage of an annuity?

• High liquidity

• Low fees

• Guaranteed income stream

• Tax-free growth

What are the tax advantages of an IRA?

• Tax-free growth of investments and potential tax deductions for contributions.

• Tax-deferred growth of investments and no tax deductions for contributions.

• Tax-free growth of investments and no tax deductions for contributions.

• Tax-deferred growth of investments and potential tax deductions for contributions.