WorksheetsRetirement Accounts
Total questions: 15
Worksheet time: 30mins
Nothing about the account changes, even if you switch jobs
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
Eligibility may be affected by how long you work with a given company
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
All employers offer this type of account
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
The money you put into this retirement account has already had taxes taken out
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
You pay taxes when you eventually take the money out
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
Your company may contribute funds toward your retirement
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
Any contributions you make come directly from your paycheck
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
You make contributions from your bank account
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
Your employer has some say in how the money is invested
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
You have some choice in how your contributions are invested
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
Your total retirement benefit will depend on the risk level of the investments you chose
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
You’re promised a fixed benefit each month, which may increase with inflation
Pension
Traditonal 401(k)
Traditional IRA
Roth IRA
None of the above
Lucia is 40 years old and makes $60,000 a year. She needs a monthly budget in retirement of $2,225 but has yet to start saving. Daniel is 22 years old and makes $50,000 a year. He needs a monthly budget in retirement of $2,500 but has yet to start saving. Both would like to retire by 67. Who will reach their goal easier?
Lucia
Daniel
Both can reach their goal easily
Neither can reach their goal
Jenny says a Roth IRA is best because you pay taxes now and avoid them in retirement. Jomaine says a Traditional IRA or 401(k) is better because you pay taxes later. How might both be right?
Your friend Sonia says pensions and 401(k)s are the best retirement options because they offer you “free money.” What does she mean by this?
