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1.
Jennifer is self-employed, operating a graphic design studio out of her home. She recently established the following type of employer retirement plan:
Keogh. A Keogh is available to people who are self-employed or who work for an unincorporated business.
2.
Employer retirement plans offer all of the following except _______.
Tax-free savings for retirement. You pay taxes on your investment in the employer retirement plan only when you withdraw money from your account at retirement.
3.
Megan's employer, a public technical college, has told her that it will match 100 percent of her contribution to her retirement account. Based on this fact, which of the following plans does she participate in at work?
403(b) plan. Employees of a public college may participate in a 403(b).
4.
When you resign or retire from your job, your employer may continue to make contributions to your retirement plan.
False. Your plan is tied to your employment, so employer contributions cease when you leave the organization.
5.
Employee contribution limits to employer retirement plans are subject to yearly adjustments for _______ every year.
Inflation. Contribution limits rise based on inflation.