WorksheetsFinancial Literacy Retirement
Total questions: 25
Worksheet time: 31mins
Which of the below is an employer based retirement plan that both employees and employers contribute to?
Traditional IRA
Roth IRA
401K
Pension
Which of the below is an employer based retirement plan that only employers contribute to?
Traditional IRA
Roth IRA
401K
Pension
What type of employers usually offer pension plans for employees?
Government agencies
fast food restaurants
small start ups
private schools
Which of these accounts do you set up at a brokerage firm or other financial institution?
401K
Pension
Individual Retirement Account
What is the difference between a Traditional and Roth IRA?
A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.
A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.
What account is a good idea if you are in a lower tax bracket than you will be at retirement?
Traditional IRA
Roth IRA
Which of these accounts will NOT change if you switch jobs?
IRA
401K
Pension
Which of below accounts is your contribution directly taken out of your paycheck?
401K
IRA
Which type of account will your employer often "match" your contributions?
Traditional IRA
401K
Roth IRA
Pension
What does tax deferred mean?
You pay taxes when you put the money into the account and when you withdraw it.
You pay taxes now when you contribute to your account.
You pay taxes at a later date when the money is withdrawn.
The money put into this type of account has already had taxes taken out.
Pension
401K
Roth IRA
Traditional IRA
Which type of IRA has contributions that are tax-deferred?
Traditional
Roth
If you leave a company before the required minimum of years to retain your pension, what happens to the money?
You receive 1/2 of it when you leave the company
You receive 1/3 of it when you leave the company
You receive all of the money and can roll it into your new retirement plan
You don't receive any of the money
An Action of withdrawal from one's position of occupation or from active working life
Career
Trustee
Retirement
Living Trust
Federal insurance program which provides benefits to retired individuals or those who are unemployed or disabled
Pension
Social Security
401k
Certification of Deposit (CD)
Life expectancy refers to
Your perception of how long you expect to live.
An estimate of how much money you need for retirement.
A statistical estimate of the number of years you will live in retirement.
A statistical measure of the average life span of a specific population.
Which of the following events will decrease your retirement funds?
Inflation decreases to 2 percent, but your investment earnings continue drawing 10 percent
Inflation increases by 10 percent, making prices more expensive now than before.
You make regular contributions to your retirement account.
. Your employer matches your contributions to your retirement account.
IRA's are
Individual Retirement Accounts.
Integrated Retirement Accounts.
Inflation Resistant Accounts.
. Individual Retirement Authorities.
If you have a retirement account,
you can access the funds at any time, even though you pay a penalty to do so.
you cannot access the funds until you officially retire.
it is a good strategy to borrow frequently from it.
your opportunity cost for borrowing from it is very low.
Why is a Roth IRA a better option for young savers over a Traditional IRA?
You will get tax deductions every year.
You will not have to pay the taxes on that money when you retire (and taxes will probably go up!)
You can save more money every year.
There is less paperwork to complete in order to sign up.
