Retirement Quiz

What type of employers usually offer pension plans for employees?

• Government agencies

• fast food restaurants

• small start ups

Which of these accounts will NOT change if you switch jobs?

• IRA

• 401K

• Pension

Which of below accounts is your contribution directly taken out of your paycheck?

• 401K

• IRA

Which type of account will your employer often "match" your contributions?

• Traditional IRA

• 401K

• Roth IRA

Payments made to shareholders of a company's stock are called?

• coupon

• interest

• dividend

You don't need a plan when it comes to your money. (a)  

• False

• True

Answer explanation

You do need a plan when it comes to your money to ensure financial stability and achieve your goals. Therefore, the correct answer is False.

Retirement planning should ideally begin...

• a few years before retirement

• when all debts are paid off

• when the first paycheck is received from your first real job

Answer explanation

Retirement planning should ideally begin when the first paycheck is received, allowing for long-term financial stability and growth.

Which of the below is an employer-based retirement plan that both employees and employers contribute to?

• 401k

• Roth IRA

Answer explanation

401k is an employer-based retirement plan where both employees and employers contribute, making it the correct choice.

What is a 401(k) plan?

• A type of vacation plan

• A college savings plan

• A retirement savings plan offered by employers

Answer explanation

A 401(k) plan is a retirement savings plan offered by employers, allowing employees to contribute a portion of their salary to a tax-advantaged investment account for retirement purposes.

What is the earliest age that an individual can take retirement distributions from a retirement plan without penalty?

• 50

• 59 1/2

• 65

Answer explanation

The correct choice is 59 1/2 because this is the earliest age at which an individual can take retirement distributions from a retirement plan without penalty.