Retirement Planning Quiz

How many months of living expenses should a fully funded emergency fund cover according to the "Steps to Financial Security"?

• 1-2 months

• 3-6 months

• 7-9 months

• 10-12 months

Once the emergency fund is fully funded, what percentage of your income should you invest in retirement plans?

• 3-6%

• 15-20%

• 25-30%

• 10-15%

Which of the following is a type of retirement plan?

• 401k

• 529

• HSA

• CD

SEPP is an acronym for which of the following retirement plans?

• Simplified Employee Pension Plan

• Standardized Earnings Protection Plan

• Secure Employment Provision Program

• Simplified Equity Participation Plan

Who is eligible to start a retirement plan according to the information provided?

• Only people under the age of 50

• Only people over the age of 18

• Only non-income earning spouses

• Anyone with an earned income regardless of age

Can a non-income earning spouse contribute to a retirement plan, and if so, how much?

• No, they cannot contribute

• Yes, the same amount as the income earner

• Yes, half the amount of the income earner

• Yes, but only $1,000 per year

What type of plan is a Roth IRA?

• Pre-tax plan

• After-tax plan

• Big-tax plan

• Taxable plan

How are withdrawals from a Roth IRA treated for tax purposes?

• Taxable

• Tax-deferred

• Tax free

• Subject to penalty

What is the income limit for a single person to be eligible to contribute to a Roth IRA?

• $161,000 per year

• $208,000 per year

• $150,000 per year

• No limit

What is the income limit for a married couple to be eligible to contribute to a Roth IRA?

• $140,000 per year

• $240,000 per year

• $250,000 per year

• No limit