Understanding Retirement Plans

Front

What has largely replaced pension plans due to being less costly for employers? Options: IRA, Defined-benefit plans, 401(k) retirement savings plan, Social Security

Back

401(k) retirement savings plan

Front

What is a key feature of defined-benefit pension plans?

Back

Employer guarantees a specific monthly payment after retirement.

Front

What age must you be to withdraw money from most retirement plans without penalty?

Back

59 1/2

Front

What is the maximum contribution limit to a 401(k) for those under 50 as of 2024?

Back

$23,000

Front

What is a major difference between a Roth IRA and a traditional IRA?

Back

Roth IRA allows for tax-free withdrawals at retirement.

Front

What is the primary disadvantage of 401(k) plans mentioned? Options: No tax advantages, Mandatory employer matching, Limited investment choices, Low contribution limits

Back

Limited investment choices

Front

What does IRA stand for?

Back

Individual Retirement Arrangement/Account

Front

What is the contribution limit for a traditional IRA for those under 50 as of 2024?

Back

$7,000

Front

At what age are you required to start withdrawing money from a 401(k)?

Back

72

Front

What is a unique feature of employer contributions to a 401(k) plan?

Back

They may be subject to a vesting schedule.