WorksheetsFA_Ret-EngagementPiece_7984
Total questions: 12
Worksheet time: 6mins
What is a 401K?
A tax-advantaged savings account that helps individuals save for retirement.
An employer-sponsored retirement savings plan that is controlled entirely by the employer.
A retirement plan aiming to save up to a minimum of $401,000.
Employer-sponsored retirement savings plan. The employee decides how to invest contributions.
What is a Pension?
A tax-advantaged savings account that helps individuals save for retirement.
An employer-sponsored retirement savings plan that is controlled entirely by the employer.
A retirement plan aiming to save up to a minimum of $401,000.
Employer-sponsored retirement savings plan. The employee decides how to invest contributions.
What is an IRA?
A tax-advantaged savings account that helps individuals save for retirement.
An employer-sponsored retirement savings plan that is controlled entirely by the employer.
A retirement plan aiming to save up to a minimum of $401,000.
Employer-sponsored retirement savings plan. The employee decides how to invest contributions.
There are a couple of types of IRA. Select the two common types of IRA.
Roth
Basic
Traditional
Short-term
A Traditional IRA offers an upfront tax deduction. Later on, however, withdrawals in your retirement are taxed.
A Roth IRA offers tax-free growth and withdrawals, but no immediate tax benefits for contributions.
False
True
In a 401K, the employee has no control over investments.
In a pension, the employer has control and manages investments.
Financially speaking, why do people typically retire at 67 years old?
To receive full Social Security benefits
Typically the most common age where one's health begins declining
It is required by law
Approximate age where employers cut off employees
Which of the below is an employer based retirement plan that employers contribute to and that "guarantees" a certain amount of money each month in your retirement?
Traditional IRA
Roth IRA
401K
Pension
What is the difference between an IRA and 401k/403b plan
There is no difference.
401k/403b plans are after tax plans while IRAs are pre-tax plans.
IRAs are set up by individuals; whereas 401k/403b plans are employer sponsored plans.
These plans do not exist.
Which of the following is a retirement plan offered by an employer that both the employee and (typically) employer contribute to?
Traditional IRA
Roth IRA
401K
