WorksheetsFinancial Planning Questions
Total questions: 15
Worksheet time: 8mins
What is a 401(k) plan?
A type of health insurance
A retirement savings plan sponsored by an employer
A government pension plan
A type of mortgage
Which of the following is a benefit of a Roth IRA?
A) Tax-deductible contributions
B) Tax-free withdrawals in retirement
C) Employer matching contributions
D) Early withdrawal penalties
At what age can you start withdrawing from a traditional IRA without penalty?
55
59 ½
62
65
What is the maximum contribution limit for a 401(k) in 2025?
$18,000
$19,500
$22,500
$26,000
Which of the following is a characteristic of a defined benefit plan?
Contributions are made by the employee only
Benefits are based on a formula considering salary and years of service
Investment risk is borne by the employee
Contributions are tax-free
What is a key feature of a SEP IRA?
It is only available to government employees
It allows for higher contribution limits than traditional IRAs
It requires mandatory employer contributions
It offers tax-free withdrawals
Which of the following is true about Social Security benefits?
They are only available to those who have never worked
They are based on your highest 35 years of earnings
They are tax-free
They can be claimed at any age
What is the purpose of a catch-up contribution?
To allow younger workers to contribute more
To help older workers save more as they approach retirement
To match employer contributions
To reduce taxable income
Which of the following is a disadvantage of an annuity?
Guaranteed income for life
Tax-deferred growth
High fees and surrender charges
Protection against market downturns
What is the primary benefit of a Health Savings Account (HSA) in retirement planning?
It provides a fixed income in retirement
It offers tax-free withdrawals for qualified medical expenses
It guarantees a return on investment
It is only available to retirees
What is the primary difference in ownership between banks and credit unions?
A) Banks are owned by customers, and credit unions are owned by shareholders.
B) Banks are for-profit institutions, and credit unions are nonprofit organizations owned by members.
Which of the following is generally true about the interest rates offered by credit unions compared to banks?
Credit unions typically offer lower interest rates on savings accounts than banks.
Credit unions typically offer higher interest rates on savings accounts than banks.
Credit unions and banks offer identical interest rates on savings accounts.
Banks typically offer lower interest rates on loans than credit unions.
What is a major benefit of using a credit union over a bank for financial services?
Credit unions offer more expensive services than banks.
Credit unions prioritize profits over customer service.
Credit unions often provide more personalized customer service and lower fees.
Credit unions are only available to certain regions or countries.
Which type of financial institution is more likely to charge higher fees for services such as ATM withdrawals and account maintenance?
A) Credit unions
B) Banks
C) Both banks and credit unions charge the same fees
Which of the following institutions charge fees for these services?
Credit Unions
Banks
Both banks and credit unions
Neither banks nor credit unions charge fees for these services.
