WorksheetsRetirement and Legal Planning Quiz
Total questions: 28
Worksheet time: 14mins
Which type of retirement plan is sometimes called a pension plan?
defined-benefit plan
defined-contribution plan
401(k) plan
Roth IRA
A person born in 1960 or later is eligible for full Social Security benefits at what age?
60
65
67
70
Which type of defined-contribution plan is an employer-sponsored plan in which contributions are made with after-tax earnings, but withdrawals are not taxed?
401(k)
403(b)
Roth 401(k)
Roth IRA
At what age do required minimum distribution (RMD) rules go into effect?
55
65
59 1/2
72
Which legal document gives a person the power to act for another person regarding financial and legal matters?
probate
will
power of attorney
trust
What characteristics must a person have in order to create a legal will in most states?
Be 18 years old
Be of sound mind.
Own at least $10,000 worth of property.
Both A and B.
Which of the following is not accomplished in a will?
Name an executor.
Name power of attorney.
Name a guardian.
Name beneficiaries.
Dying (a) is when a person dies without a will.
Which type of trust is set up under the terms of a person’s will and becomes effective upon death?
living trust
testamentary trust
irrevocable trust
revocable trust
Which type of trust is one in which the terms can be changed or ended?
living trust
testamentary trust
irrevocable trust
revocable trust
Individual retirement arrangement in which individuals contribute after-tax income, but withdrawals are not taxed is (a) .
Statement of instructions for specific medical treatment if a person becomes unable to make medical decisions related to deathbed concerns is (a) .
Creator of a trust is (a) .
Minimum amount that must be withdrawn from a retirement plan each year is (a) .
Process of determining when money that has been set aside in a retirement plan belongs to an employee is (a) .
Self-employed retirement plan that allows tax-deductible contributions for employers and employees is (a) .
Retirement plan in which the employee and/or employer contributes to the employee’s individual account under the defined plan is (a) .
The period of life after ending a working or professional career is (a) .
Typically, after seven to ten years, an employee becomes fully (a) in the employer-sponsored retirement plan.
An employer-sponsored retirement plan that allows an individual to deposit part of his or her earnings into a tax-deferred investment is a(n) (a) plan.
A(n) (a) plan is available to employees of nonprofit organizations such as public schools.
A type of defined-contribution plan that does not have RMD rules and is available primarily to governmental employees is a(n) (a) plan.
A person who earns income independent of an employer, but is not organized as a business, is a(n) (a) .
(a) is a pension plan run by the federal government.
A(n) (a) is a legal document that states a person’s wishes for an estate after death.
Beneficiaries who are family members are called (a) .
(a) is a legal process of settling the affairs of an estate.
An arrangement through which a person transfers assets to a trustee, who then oversees and manages the assets on behalf of the beneficiaries, is a(n) (a) .
