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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.
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.
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.
4.
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).
5.
Who most likely participates in a 403(b) plan?
Joshua, who is the executive director of the local United Way. 403(b) plans offer a retirement savings option to many public school teachers, professors, and employees of nonprofit organizations.