Retirement Savings Quiz

What is the primary benefit of starting to save for retirement early?

• Larger tax refunds

• Compounding interest

• Higher employer match

• Tax-free withdrawals

Which of the following is true about a 401(k)?

• Contributions are always tax-free.

• It is available to anyone, regardless of employment.

• Employers often provide matching contributions

• Withdrawals are tax-free.

What is the contribution limit for a Roth IRA in 2024 for individuals under 50?

• $3,500

• $6,500

• $10,000

• $22,500

Which type of retirement plan guarantees a fixed income for life?

• Roth IRA

• Traditional IRA

• Pension

• 401(k)

Which of these is a benefit of a Roth IRA?

• Employer matching contributions

• Contributions are tax-deductible

• Withdrawals in retirement are tax-free

• No contribution limits

What is an employer match in a 401(k)?

• A bonus given for contributions

• A penalty for low contributions

• Money the employer adds based on the employee's contributions

• A fee for managing the account

At what age can you withdraw from a retirement account like a 401(k) without penalty?

• 55

• 59 ½

• 62

• 65

What is the main tax advantage of a Traditional IRA?

• Withdrawals are tax-free

• Contributions are tax-deductible

• Employer matching

• No penalties for early withdrawals

Which of the following is NOT a type of retirement account?

• 401(k)

• Roth IRA

• High-Yield Savings Account

• Pension

What is the penalty for withdrawing money early from a 401(k)?

• 5%

• 10%

• 15%

• 20%