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1.
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.
2.
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.
3.
Employee contribution limits to employer retirement plans are subject to yearly adjustments for _______ every year.
Inflation. Contribution limits rise based on inflation.
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.
If you participate in a 401(k) plan, it is possible to contribute up to 100 percent of your compensation.
True. If you participate in a 401(k) plan, you may contribute up to 100 percent of your compensation if it is less than the current allowed contribution limit.