401

In this type of retirement account, some employers can match the percentage of your contributions to it.

• Pension

• 401(k)

• Traditional IRA

• Roth IRA

What is a 401(k) plan primarily used for?

• Retirement savings

• Health insurance

• Education funding

• Real estate investment

Which of the following is a key feature of a 401(k) plan?

• Employer matching contributions

• Tax-free withdrawals

• Government funding

• Fixed interest rate

At what age can you typically start withdrawing from a 401(k) without penalty?

• 55

• 59 1/2

• 62

• 65

What is the maximum contribution limit for a 401(k) in 2023?

• $19,500

• $20,500

• $22,500

• $25,000

Which of the following is a benefit of contributing to a 401(k)?

• Tax-deferred growth

• Immediate liquidity

• Guaranteed returns

• No contribution limits

What is the penalty for early withdrawal from a 401(k) before age 59 1/2?

• 5%

• 10%

• 15%

• 20%

Which type of 401(k) allows for after-tax contributions?

• Traditional 401(k)

• Roth 401(k)

• SEP 401(k)

• SIMPLE 401(k)

What is the primary difference between a 401(k) and a Roth 401(k)?

• Tax treatment of contributions

• Investment options

• Employer matching

• Contribution limits

Who is eligible to participate in a 401(k) plan?

• Only full-time employees

• Only part-time employees

• Any employee meeting the plan's requirements

• Only employees over 50