Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
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.
2.
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.
3.
Employers are not required to contribute to employees' 401k plans.
True. Employers are not required to.
4.
Shawn recently joined a dozen other employees of a small biotechnology company and was glad to learn that under its employer retirement plan, the firm will contribute to an IRA for him. Shawn's new employer offers a _______.
SEP IRA. The simplified employee pension (SEP IRA) enables a company with 25 or fewer employees to establish an IRA for each employee.
5.
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.