Retirement and Investment Assessment

What is the primary source of funding for Social Security?

• Personal savings

• Employer contributions

• Payroll taxes under FICA

• Investment returns

Tags

CCSS.6.RP.A.3B

At what age can you start receiving Social Security retirement benefits, albeit at a reduced amount?

• 55

• 59.5

• 62

• 67

Which type of IRA allows for tax-free withdrawals in retirement?

• Traditional IRA

• Roth IRA

• SEP IRA

• SIMPLE IRA

What is the penalty for early withdrawal from an IRA before age 59.5?

• 5%

• 10%

• 15%

• There is no penalty

Tags

CCSS.HSF-IF.C.8B

What highly sought after type of contribution does a 401(k) plan often include from employers?

• Matching contribution

• Fixed contribution

• Voluntary contribution

• No contribution

As of 2024, what is the contribution limit for an IRA if you are age 50 or older?

• $6,000

• $7,000

• $8,000

• $9,000

For traditional 401(k) plans, when are taxes typically paid?

• At the time of contribution

• Annually based on gains

• Upon withdrawal

• No taxes are paid

What is the current full retirement age for Social Security benefits?

• 65

• 66

• 67

• 70

What is a key advantage of Roth accounts (like Roth IRA and Roth 401(k))?

• Immediate tax deduction on contributions

• Tax-free growth and withdrawals

• No annual contribution limits

• No income restrictions for contributions

Which of the following is true regarding investment choices between 401(k)s and IRAs?

• 401(k)s offer a wider range of investment choices than IRAs.

• 401(k)s are limited to the investment options provided by employers.

• IRAs typically offer various index funds

• There is no difference in investment choices between 401(k)s and IRAs.