Financial Planning Quiz

What is one of the key aspects of financial planning for retirement?

• Maximizing retirement sources

• Investing in stocks

• Buying a new car

• Taking out a loan

What is the recommended age to start making retirement savings a priority?

• 60 years old

• As soon as possible

• 50 years old

• 40 years old

What is the maximum amount an individual can defer into a 403 B or 457 account in 2023?

• $10,000

• $19,500

• $22,500

• $30,000

What is the penalty for taking money out of a retirement account before the age of 59 and a half?

• No penalty

• 20% penalty

• 30% penalty

• 10% penalty

What is the age at which an individual is required to start taking distributions from their retirement account?

• 65

• 70

• 72 and a half

• 75

What is the tax status of money taken out of a retirement account?

• Tax deductible

• Partially taxable

• Fully taxable

• Depends on type of account

What is the difference between a Roth retirement account and a traditional account?

• Contributions to a Roth account are made after-tax, while contributions to a traditional account are made pre-tax.
• Contributions to a Roth account are made pre-tax, while contributions to a traditional account are made after-tax.
• Roth accounts have no contribution limits, while traditional accounts have strict contribution limits.
• Withdrawals from a Roth account are taxed, while withdrawals from a traditional account are tax-free.

Besides a pension what sources of income may retired teachers have:

• Social Security benefits
• Part-time work

• Rental Properties

• Investments and retirement accounts