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1.
Catchup contributions to employee retirement plans are normally allowed for whom?
Employees 50 or older. Catchup contributions allow older workers to save extra money for their retirement.
2.
Your employer must make a contribution to your retirement account if you participate in a _______.
SIMPLE IRA. If your employer offers a SIMPLE IRA, it generally must match your contribution up to 3 percent of your compensation.
3.
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.
4.
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.
5.
Some employer retirement plans enable you to actually lower your current taxable income.
True. Some employer retirement plans enable you to contribute pre-tax dollars to your retirement account.