Retirement Accounts

Front

What happens to your IRA if you pass away?

Back

Your IRA can be inherited by your beneficiaries, who may have different options for how to manage the account, including taking distributions.

Front

Which of the below accounts is your contribution directly taken out of your paycheck?

Back

401K

Front

What is NOT a reason you can take an early withdrawal from your IRA without penalty?

Back

To pay taxes owed to the IRS

Front

Which of the below is an employer-based retirement plan that both employees and employers contribute to?

Back

401K

Front

What type of employers usually offer pension plans for employees?

Back

Government agencies

Front

What is an IRA?

Back

An Individual Retirement Account (IRA) is a savings account that offers tax advantages for retirement savings.

Front

What is a 401K plan?

Back

A 401K plan is a retirement savings plan sponsored by an employer that allows employees to save a portion of their paycheck before taxes are taken out.

Front

What is the difference between a Traditional IRA and a Roth IRA?

Back

Traditional IRA contributions may be tax-deductible, and taxes are paid upon withdrawal, while Roth IRA contributions are made with after-tax dollars, and withdrawals are tax-free.

Front

What is the penalty for early withdrawal from an IRA?

Back

The penalty for early withdrawal from an IRA is typically 10% of the amount withdrawn, in addition to regular income tax.

Front

What are required minimum distributions (RMDs)?

Back

RMDs are the minimum amounts that must be withdrawn from retirement accounts, such as IRAs and 401Ks, starting at age 72.