Retirement Planning Quiz

The time when a person stops working for an employer.

• Retirement

• Semi Retired

• Pre Tax Dollars

• After Tax Investment

A retirement savings plan that is sponsored and set up by an employer for its employees; like other retirement plans, there are strict rules as to when the money can be withdrawn without a penalty and strict contribution limits that change from year to year.

• 401(K)

• Roth IRA

• IRA

• SEP Plan

Deposits are taxable, but when the money is withdrawn after having been there for at least 5 years and the saver is at least 59½ years old, the money and the income earned is tax-exempt, or free from all taxes.

• Roth IRA

• Tax Exempt

• SIMPLE Plan

• 403(B)

Taxes are paid at the time the money is withdrawn from the account, not when the money is actually earned.

• Pre Tax Dollars

• After Tax Investment

• Tax Exempt

• Tax Deferred

Benefit based on earnings over a person’s working lifetime; reduced benefits can start as early as age 62; people born after 1960 must wait to start collecting full retirement benefits until age 67, their full retirement age.

• OASDI

• Social Security Benefit

• Full Retirement Age

• Social Security Statement

Based on total wages and self-employment income during the year; the amount of earnings it takes to earn a credit changes each year; in 2016, a person had to earn $1,260 in covered earnings to get one credit.

• Social Security Credit

• Social Security Benefit

• OASDI

• Social Security Membership

Age at which a person receives full retirement Social Security benefits.

• Age 59 ½

• Age 80

• Full Retirement Age

• Early retirement

An insurance that pays benefits to retired workers that help them meet their financial obligations and provides benefits to families of retired workers and disabled workers under certain conditions.

• Social Security Benefit

• Full Retirement Age

• Early Retirement

• OASDI

A deferred compensation plan given to an employee after retirement at the discretion of an employer.

• Defined Benefit Plan

• Vested

• Pension

• Pension Protection Act

The number of years an employee must participate in the plan before having the right to the investment or part of the investment.

• Vested

• Single Life Annuity

• Lump Sum Payment

• Cost of Living Allowance