UNHS - Personal Finance - Self check 11

Which plan guarantees regular payments from retirement until death?

• defined-contribution plan

• 401(k) plan

• defined-benefit plan

• 403(b) plan

In which plan are withdrawals NOT taxed?

• Roth 401(k) plan

• 401(k) plan

• 457 plan

• 403(b) plan

If an account is tax-deferred, it means

• you never have to pay taxes on the money in the account.

• you don’t pay taxes until you withdraw money from the account.

• you pay taxes on money when you deposit it in the account.

• you cannot deduct the amount from your taxable income

Required minimum distribution means

• you must start withdrawing money from an account by a certain age.

• you cannot withdraw money from an account until you retire.

• you can deduct the amount in an account from your taxable income.

• you cannot invest the money in an account in individual stocks.

Which type of retirement account is mainly for government employees?

• 401(k) plan

• 403(b) plan

• 457 plan

• Roth 401(k) plan

Which statement about traditional IRAs is TRUE?

• Contributions are NOT tax-deductible.

• Contributions are tax-deductible.

• Withdrawals are NOT taxed.

• There is no limit on contributions.

Which statement about ROTH IRAs is TRUE?

• Contributions are tax-deductible

• Interest is always taxed when you withdraw money.

• Principal is taxed when you withdraw money.

• Contributions are NOT tax-deductible.

Transferring money from one retirement account to another without paying taxes on it is

• probate

• a rollover

• illegal

• a Keogh plan.

At what age can a worker retire with PARTIAL Social Security benefits?

• 59 1⁄2

• 62

• 67

• 70 1⁄2

Which document gives someone the power to make financial and legal decisions for you if you become incapacitated?

• will

• living will

• power of attorney

• SEP-IRA