Retirement and Legal Planning Quiz

Which type of retirement plan is sometimes called a pension plan?

• defined-benefit plan

• defined-contribution plan

• 401(k) plan

• Roth IRA

A person born in 1960 or later is eligible for full Social Security benefits at what age?

• 60

• 65

• 67

• 70

Which type of defined-contribution plan is an employer-sponsored plan in which contributions are made with after-tax earnings, but withdrawals are not taxed?

• 401(k)

• 403(b)

• Roth 401(k)

• Roth IRA

At what age do required minimum distribution (RMD) rules go into effect?

• 55

• 65

• 59 1/2

• 72

Which legal document gives a person the power to act for another person regarding financial and legal matters?

• probate

• will

• power of attorney

• trust

What characteristics must a person have in order to create a legal will in most states?

• Be 18 years old

• Be of sound mind.

• Own at least $10,000 worth of property.

• Both A and B.

Which of the following is not accomplished in a will?

• Name an executor.

• Name power of attorney.

• Name a guardian.

• Name beneficiaries.

Dying (a)   is when a person dies without a will.

Which type of trust is set up under the terms of a person’s will and becomes effective upon death?

• living trust

• testamentary trust

• irrevocable trust

• revocable trust

Which type of trust is one in which the terms can be changed or ended?

• living trust

• testamentary trust

• irrevocable trust

• revocable trust