Retirement Pensions

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Which type of retirement account allows for tax-free withdrawals at retirement?

Roth IRA (correct)

Traditional IRA

401(k)

403b

What is the penalty for withdrawing funds from a traditional IRA before the age of 59.5?

20% penalty

No penalty

50% penalty

10% penalty (correct)

Which retirement account type allows for contributions to be deducted from salary on a pre-tax basis?

403b

SEP IRA

Roth IRA

401(k) (correct)

What is the purpose of vesting in a 401(k) plan?

To determine the forfeiture of employer match funds Signup and view all the answers

Which of the following is a disadvantage of receiving monthly payments from a pension?

There would be no money left to pass on to your heirs Signup and view all the answers

What is the calculation used to determine the pension amount in the example provided?

2% for every year of service multiplied by the highest 5 years average salary Signup and view all the answers

What has happened to the number of companies offering pension plans from 1998 to 2015?

It has decreased by 90% Signup and view all the answers

Which of the following is a characteristic of a defined benefit plan?

It provides a fixed monthly payment in retirement Signup and view all the answers

What is the disadvantage of receiving monthly payments from a pension?

There would be no money left to pass on to heirs Signup and view all the answers

What has happened to the number of companies offering pension plans from 1998 to 2015?

It has decreased significantly Signup and view all the answers

Which type of retirement account allows for tax-free withdrawals at retirement?

Roth IRA Signup and view all the answers

What is the penalty for withdrawing funds from a traditional 401(k) before the age of 59.5?

10% Signup and view all the answers

Which retirement account type allows for contributions to be deducted from salary on a pre-tax basis?

403b Signup and view all the answers

What is the maximum employee contribution limit for a traditional 401(k) before the age of 50?

$19,000/year Signup and view all the answers

Retirement Pensions

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Questions and Answers

Which type of retirement account allows for tax-free withdrawals at retirement?

What is the penalty for withdrawing funds from a traditional IRA before the age of 59.5?

Which retirement account type allows for contributions to be deducted from salary on a pre-tax basis?

What is the purpose of vesting in a 401(k) plan?

Which of the following is a disadvantage of receiving monthly payments from a pension?

What is the calculation used to determine the pension amount in the example provided?

What has happened to the number of companies offering pension plans from 1998 to 2015?

Which of the following is a characteristic of a defined benefit plan?

What is the disadvantage of receiving monthly payments from a pension?

What has happened to the number of companies offering pension plans from 1998 to 2015?

Which type of retirement account allows for tax-free withdrawals at retirement?

What is the penalty for withdrawing funds from a traditional 401(k) before the age of 59.5?

Which retirement account type allows for contributions to be deducted from salary on a pre-tax basis?

What is the maximum employee contribution limit for a traditional 401(k) before the age of 50?

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