Retirement Accounts

Which of the below is an employer based retirement plan that both employees and employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension

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

What are the tax benefits of a Roth IRA?

• Qualified withdrawals are tax-free, meaning you do not pay taxes on earnings or contributions when you withdraw them in retirement.

• Contributions are tax-deductible in the year they are made.

• All earnings are taxed at a lower rate than traditional IRAs.

• You can withdraw contributions at any time without penalty, but earnings are taxed.

What account is a good idea if you are in a lower tax bracket than you will be at retirement?

• Traditional IRA

• Roth IRA

If you never paid into the social security system, you can never collect your own benefits.

• True

• False

Which of below accounts is your contribution directly taken out of your paycheck?

• 401K

• IRA

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

• 401K

• Pension

• Individual Retirement Account

What happens to your IRA if you pass away?

• Your IRA is automatically closed and the funds are lost.

• Your IRA can be inherited by your beneficiaries, who may have different options for how to manage the account, including taking distributions.

• Your IRA is transferred to the government as unclaimed property.

• Your IRA must be liquidated immediately upon your death.

You are 53 and you need to pay for a surgery. It is $15,500. You take the money out of your Roth IRA. How much is the tax if you are in the 22% tax bracket?

Use the $ with no space in your answer. Example: $2500 .

if it is zero say $0.

Which of the following is a supplemental retirement plan for government workers?

• 401k

• 403b

• Roth IRA

• Trad IRA