Retirement Basics and Accounts

Front

What is retirement?

Back

Retirement is the action or fact of leaving one's job and ceasing to work.

Front

What is the traditional retirement age in the United States?

Back

Age 65.

Front

At what age can you receive full Social Security benefits in the U.S.?

Back

Age 66.

Front

What is Social Security?

Back

A federal program that provides retirement, disability, and survivor benefits to eligible individuals.

Front

How is Social Security funded?

Back

Through payroll taxes.

Front

What determines the amount of Social Security benefits you receive?

Back

Your earnings history and the age at which you start receiving benefits.

Front

What does IRA stand for?

Back

Individual Retirement Account.

Front

What is the main benefit of an IRA?

Back

It allows individuals to save for retirement with tax-free growth or on a tax-deferred basis.

Front

Who chooses the investments in an IRA?

Back

Either the individual or the financial institution managing the IRA.

Front

Are contributions to a Traditional IRA tax-deductible?

Back

Yes, they may be tax-deductible in the year they are made.