Personal Finance Ch. 11 Retirement and Savings Plans

This is a defined contribution plan offered by a corporation to its employees.

• 401(k) plan
• Pension plan
• IRA plan

A Direct Transfer will result in a penalty payment.

• True

• False

This is a tax deferred arrangement with earned income and their non-income producing spouse.

• Marital 401(k)
• Joint HSA
• Spousal IRA

One type of plan you can rollover is...

• IRA
• 401(k)
• Pension

This is a IRA funded with after-tax dollars and grows tax free.

• 401(k)
• Roth IRA
• 529 Plan

An SEPP receives contributions from...

• individuals, employers, or both
• charities, foundations, or both
• corporations, governments, or both

The difference between a 403b and 401k is...

• 403b plans are only for government employees.
• The difference is in the tax treatment of contributions.
• 401k plans have higher contribution limits.

The main difference between a 457 plan and 401k is...

• They have the same contribution limits
• 457s can be withdrawn when ever you retire

• Both are retirement plans for government employees

Why would you make pre-tax contributions to your retirement?

• To increase taxable income and potentially raise tax liability.
• To reduce taxable income and potentially lower tax liability.
• To avoid penalties for early withdrawal.

An ESA is used to pay for...

• housing
• medical expenses
• education