Investing for Retirement

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

• IRA

• 401K

• Pension

What is the difference between a Traditional and Roth IRA?

• A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.

• A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.

Which of the following is an example of a defined contribution benefit plan?

• 401k

• IRA

• Pension

Which of these accounts do you set up at a brokerage firm or other financial institution?

• 401K

• Pension

• Individual Retirement Account

The money put into this type of account has already had taxes taken out.

• Pension

• 401K

• Roth IRA

• Traditional IRA

1.

Most Americans will have enough money from Social Security to retire comfortably.

• True

• False

What does tax deferred mean?

• You pay taxes when you put the money into the account and when you withdraw it.

• You pay taxes now when you contribute to your account.

• You pay taxes at a later date when the money is withdrawn.

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

• Traditional IRA

• 401K

• Roth IRA

• Pension

What type of employers usually offer pension plans for employees?

• Government agencies

• fast food restaurants

• small start ups

• private schools

What is considered to be "retirement" age, when it is acceptable to begin taking IRA distributions without penalty?

• 50

• 59 1/2

• 65

• 70 1/2