Retirement Plans

What do many employers do with respect to employee contributions to 401k, 403b, or 457 plans?

• They deduct the contributions from the employee's benefits.

• They match the contributions up to a certain amount.

• They double the contributions made by the employee.

• They ignore the contributions for tax purposes.

401k plans are retirement plans that are named after section 401k in the Internal Review Code

• True

• False

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

• Traditional IRA

• Roth IRA

• 401K

• Pension

Which of the below is an employer based retirement plan that only employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension

The best choice a young person can make regarding his/her retirement planning is to

• start planning as soon as possible

• win the lottery

• marry someone rich

• borrow money from parents

When should you start planning for your retirement?

• when you turn 21

• as soon as possible & the younger, the better

• when you get married

The government's retirement plan is known as _____________?

• IRA

• Social Security

• 401k

• the government doesn't have a retirement plan

What is a common feature of a 401(k) retirement plan?

• Employees can withdraw funds anytime without penalty.

• Employers often match employee contributions.

• It is only available to government employees.

• It offers a fixed interest rate.

Which type of retirement plan allows for tax-free withdrawals after retirement?

• Traditional IRA

• Roth IRA

• 401(k)

• 403(b)

What is the primary benefit of a pension plan?

• Guaranteed income for life after retirement.

• High-risk investment opportunities.

• Immediate access to funds.

• Tax-free contributions.