Retirement Savings Accounts Quiz

A (a)   is a retirement savings account where you don't pay taxes on the money until you withdraw it during retirement.

A (a)   is a retirement savings account where you pay taxes upfront, so you don't have to pay taxes again when you withdraw the money in retirement.

A (a)   plan is offered by some employers, allowing employees to save a portion of their paycheck for retirement before taxes are taken out.

A (a)   plan is similar to a 401(k) but is typically offered by public schools, nonprofits, and certain other organizations.

A (a)   IRA is another retirement plan for small businesses and self-employed people, offering both employee and employer contributions.

A (a)   plan is a retirement savings plan where a business shares its profits with employees by contributing to their retirement savings accounts.

A (a)   plan is one where your employer promises to pay you a certain amount each month in retirement, based on factors like salary and years of service. Commonly known as a pension.

An (a)   rollover is a way to move money from one retirement account to another without paying taxes or penalties.

Retirement plans are like special containers that hold your money and help it grow over time so you can have a comfortable retirement when you're older.

• True

• False

Retirement plans are different than brokerage investment accounts in that they have different tax advantages, annual contribution limits, and restrictions on when money can be withdrawn.

• True

• False