investing for retirement reading quiz

Personal Finance Investing for Retirement (Reading Quiz)Start studying VB.Learn vocabulary, terms, and more with easy reading. If you have a plan to retire within 9 years, now’s the time to cross these tasks off your retirement .

knowledge matters investing for retirement reading quiz answers :

• Why is it not a good idea to make early withdrawals from your 401(k)?

You usually have to pay a strict penalty

• 401K plans are so named because:

Of the tax law that authorizes them

• Which of the following is an example of a defined contribution plan?

401(k) & Keogh plan

• When should you begin saving for retirement?

As soon as you enter the workforce

• Social Security replaces about what percent of most people’s pre-retirement income?

40%

• Which of the following is a benefit of an employer-sponsored plan?

Contributions are not taxed & Employers often match contributions

• What is the official retirement age, according to the US government?

67

• If you are a self-employed professional, which plan would work for you?

professional, which plan would work for you?
Keogh plan

• Which of the following is an example of a defined benefit plan?A pension Contributions to which type of IRA are tax deductible?

Traditional IRA

• Why is it not a good idea to make early withdrawals from your 401k?

you may face a 10% penalty and owe any deferred taxes that haven’t yet been paid. 3 Early withdrawals are typically a sub-optimal decision because of the stiff penalties savers face.