IRA Knowledge Quiz

Which of the following is NOT a feature of a Roth IRA?

• Interest grows tax-free

• Contribution limits $7,000 per year

• Tax-free withdrawal opportunities

• Unlimited contributions

What is a key difference between a Traditional IRA and a Roth IRA?

• Roth IRA contributions are tax-deductible

• Traditional IRA allows tax-free withdrawals

• Roth IRA interest grows tax-free

• Traditional IRA has no income limitations

Which type of organizations typically use a 403b plan?

• Private companies

• Schools and government organizations

• International corporations

• Small businesses

Which of the following is true about a 401k plan?

• It is only available to government employees

• It is a pre-tax plan

• It does not involve paying taxes on interest

• It is exclusively for non-profit organizations

How does a 403b plan differ from a 401k plan?

• It is only for private companies

• It is used by schools and charities

• It has no tax benefits

• It is only for international businesses

What is a benefit of a Roth 401k/403b compared to a Roth IRA?

• Lower contribution amounts

• Higher contribution amounts

• No tax on contributions

• No tax on withdrawals

What distinguishes a Roth 401k/403b from a traditional 401k?

• Pre-tax contributions

• After-tax contributions

• No contribution limits

• Only available to government employees

Which of the following is not a feature of a 403b plan?

• Used by private companies

• Similar to a 401k

• Used by government organizations

• Used by charities

What percentage of your income should you invest in retirement according to the steps to maximizing qualified plans?

• 10%

• 15%

• 20%

• 25%

According to the steps to maximizing qualified plans, what should you maximize in your 401k/403b?

• Contributions

• Withdrawals

• Matching

• Loans