Retirement Accounts

You are 42 and you want to buy a car that is cash only It is $12,000. You take the money out of your Traditional IRA. How much is the tax if you are in the 22% tax bracket?

Use the $ with no space in your answer. Example: $2500 .

if it is zero say $0.

You should start saving for retirement

• When you get married

• When you get your first job

• When you reach age 50

• When you reach age 65

You are 53 and you need to pay for a surgery. It is $15,500. You take the money out of your Roth IRA. How much is the penalty?

Use the $ with no space in your answer. Example: $2500 .

if it is zero say $0.

Which of these accounts do you set up at a brokerage firm or other financial institution?

• 401K

• Pension

• Individual Retirement Account

At what age are you required to start taking minimum withdrawals from retirement accounts (401k, IRA, 403b)?

• 51.5

• 59.5

• 62.5

• 73

You are 53 and you need to pay for a surgery. It is $15,500. You take the money out of your Roth IRA. How much is the tax if you are in the 22% tax bracket?

Use the $ with no space in your answer. Example: $2500 .

if it is zero say $0.

Which type of account will your employer often "match" your contributions?

• Traditional IRA

• 401K

• Roth IRA

• Pension

At what age can you start taking withdrawals from retirement accounts (401k, IRA, 403b) without penalties?

• 51.5

• 59.5

• 62.5

• 73

How much of your 401 k can you loan yourself?

• 10%, $10,000 max

• 20%, $20,000 max

• 50%, $50,000 max

• 10%, No max

What does tax deferred mean?

• You pay taxes when you put the money into the account and when you withdraw it.

• You pay taxes now when you contribute to your account.

• You pay taxes at a later date when the money is withdrawn.