Retirement & Tax Adv. Account Review

Which of the following is not true of an HSA?

• must have a high deductible health plan

• money deposited into the HSA is tax free

• used to pay qualified medical expenses

• taxes are paid when withdraws are made for medical payments

• at a certain point savings may be invested in the account

An individual may have both an HSA and an FSA account at the same time.

• False

• True

A primary drawback of an FSA account is that

• contributions are taxed

• must spend all contributions in the same year that they are deposited (aka "use it or lose it")

• money can only be used on qualified medical expenses

A form of retirement income where a former employer continues to pay the employee when retired (this is rare).

• Social Security

• 403b

• pension

• Roth IRA

At what age is someone (born after 1960) eligible to receive their full social security benefit?

• 62

• 65

• 67

• 70

A type of employer sponsored retirement account in which employees make contributions to the account and their employer matches those contributions (to a certain limit)

A private retirement account in which individuals make contributions after paying taxes on the income and they may make certain early withdrawals without penalties.

• 529

• 403b

• IRA

• Roth IRA

A type of private retirement account that would be recommended if you believe you will be in a lower tax bracket when retired than you are currently.

• Traditional IRA

• pension

• 401k

• Roth IRA

Which of the following is not a benefit of a 529 plan?

• contributions are tax free

• withdrawals are tax free if used for education expenses

• payments are limited to tuition payments for higher education (college)

• there is limited impact on financial aid if the account is owned by student or parent

Likely you will not need any more than is provided by Social Security to fund your retirement years.

• True

• False