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Retirement Beginner: The Language of Retirement Planning

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1.
Which retirement plan is set up for those who work in charitable organizations?
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403(b). The 401(k), IRA, and SIMPLE are used in for-profit businesses.
2.
A qualified retirement plan is one that receives _______ benefits.
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Tax. It usually means a deferral of taxes until some later date.
3.
Liquidating shares in an investment can be part of a withdrawal plan.
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True. It may be specified beforehand as a way of periodically withdrawing money from the investment.
4.
What is the general name for an investment that lets you legally avoid many taxes?
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Tax shelter. Annuities and 403(b) plans can be tax shelters, and usually are.
5.
Premiums are used to figure out how much a variable annuity will pay its holder.
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False. Annuity units are used for this purpose.
6.
The Roth IRA features tax-free distributions.
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True. In return, the contributions to it must have been taxed.