Retirement Accounts Quiz

Nothing about the account changes, even if you switch jobs.

Which types of retirement accounts does this statement apply to?

• Pension

• Traditional 401(k)

• Traditional IRA

• Roth IRA

Eligibility may be affected by how long you work with a given company.

Which types of retirement accounts does this statement apply to?

• Pension

• Traditional 401(k)

• Traditional IRA

• Roth IRA

The money you put into this retirement account has already had taxes taken out of it.

Which types of retirement accounts does this statement apply to?

• Pension

• Traditional 401(k)

• Traditional IRA

• Roth IRA

You pay taxes when you eventually take the money out. Which types of retirement accounts does this statement apply to?

• Pension

• Traditional 401(k)

• Traditional IRA

• Roth IRA

Your friend is a huge fan of the Roth IRA. This might be because they think their income in retirement will be (choose one: more / less) than it is now, and taxed at a higher rate when they take money out of the account.

(a)  

Your friend is a huge fan of the Traditional IRA and 401(k) because they'll wait until they pull the money out to pay taxes. This is because they expect their income in retirement to be (choose one: MORE or LESS) than it is now and they want their investments to accrue tax free.

(a)  

With these types of investments, any contributions you make come directly from your paycheck.

• Pension

• Traditional 401(k)

• Traditional IRA

• Roth IRA

You make contributions from your bank account.

• Pension

• Traditional 401(k)

• Traditional IRA

• Roth IRA

You're promised a fixed benefit each month (same amount each month), which may increase with inflation.

• Pension

• Traditional 401(k)

• Traditional IRA

• Roth IRA

When should you start planning for financial independence/retirement?

• When you get your fourth job out of college

• As soon as possible (when you have regular income and are in the workforce)

• Never, I'll be fine