How to Invest for Retirement Exit Ticket

1.401(k)s and IRAs are both…

• Types of investments that you can choose to have in an investment account
• Investment accounts that are commonly offered by employers
• A type of savings account that generally offers around a 1% rate of return
• Investment accounts that you can open to help you invest for retirement

2. All of the following are advantages of a 401(k), EXCEPT…

• You can invest your 401(k) into a wider variety of asset types than you can with an IRA
• Your employer may match some of your 401(k) contributions
• You can contribute more money into a 401(k) than into an IRA

3. Which type of retirement account is an investment option for ANY young person?

• Traditional IRA
• Pension
• 401(k)
• Social security

Which of the following statements best describes a primary distinction between a traditional IRA and a Roth IRA?

• Traditional IRA contributions are always tax-free

• Roth IRA withdrawals at retirement are generally tax-free

• Traditional IRA accounts can only be opened by business owners

5. What is the main benefit of an employer matching your 401(k) contributions?

• It guarantees a fixed rate of return

• It increases your total retirement savings without extra cost to you

• It allows you to withdraw funds at any time without penalty

• It eliminates all taxes on your withdrawals