Navigating Retirement Accounts: 401(k)s and IRAs

What type of employers typically offer a 401(k) plan?

• For-profit employers

• Government bodies

• Nonprofit organizations

• All of the above

Which type of 401(k) plan involves post-tax contributions?

• Traditional 401(k)

• Roth 401(k)

• 403(b)

• SEP IRA

Which 401(k) plan is generally better for individuals in a higher tax bracket?

• SEP IRA

• Traditional 401(k)

• Roth 401(k)

• 403(b)

What is a major limitation when selecting funds for a 401(k)?

• No tax advantages

• Unlimited choices

• Mandatory robo-advisor use

• Employer restrictions

What is the maximum annual contribution limit for a 401(k) as of 2016?

• $19,500

• $18,000

• $6,000

• $5,500

What is the annual contribution limit for an IRA?

• $18,000

• $5,500

• $6,000

• $19,500

Which IRA option is unavailable to high-income earners?

• 401(k)

• Roth IRA

• Traditional IRA

• SEP IRA

Which IRA is specifically designed for small-business owners and freelancers?

• Traditional IRA

• SEP IRA

• Roth IRA

• SIMPLE IRA

What should you do with your 401(k) when changing jobs?

• Roll it over into an IRA

• Transfer it to a new employer

• Cash it out

• Leave it with the old employer

What is the recommended order of funding retirement accounts?

• IRA up to limit, then 401(k)

• Max out 401(k), then IRA

• Max out IRA, then 401(k)

• 401(k) up to employer match, then IRA, then back to 401(k)