Retirement Plans Quiz

What is the primary benefit of a traditional 401K?

• Tax-free withdrawals

• Immediate access to funds

• Lower taxable income

• Unlimited contributions

At what age can you withdraw from a 401K without penalty?

• 55

• 59 and a half

• 62

• 65

What is a key difference between a traditional IRA and a 401K?

• IRA has higher contribution limits

• IRA does not require an employer

• IRA offers tax-free growth

• IRA requires an employer

What is the contribution limit for a traditional IRA in 2023 for those under 50?

• $5,500

• $6,500

• $7,500

• $8,500

How are Roth accounts funded?

• With tax-free dollars

• With employer contributions

• With after-tax dollars

• With pre-tax dollars

What is a major advantage of a Roth 401K?

• No income limits

• Employer matching

• Higher contribution limits

• Tax-free growth and withdrawals

What is the SEP IRA primarily designed for?

• Employees of large corporations

• Self-employed individuals

• Government employees

• Non-profit workers

Who is eligible for a 403b plan?

• Freelancers

• Corporate executives

• Non-profit organization employees

• Self-employed individuals

What is a unique feature of the 457b plan?

• Tax-free growth

• Employer matching

• No early withdrawal penalty

• No contribution limits

What is the additional contribution limit for a 403b after 15 years of service?

• $1,000

• $4,000

• $2,000

• $3,000