Home
>
Retirement
>
Beginner
Retirement Beginner:
The Language of Retirement Planning
Test your knowledge
Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
A _______ is the taking of funds from a plan before one is allowed to.
Choose wisely. There is only one correct answer.
Tax deduction
Distribution option
Premature distribution
Premature distribution. A distribution taken before one is eligible is a premature withdrawal or premature distribution.
2.
Tax-sheltered annuities include 403(b) plans.
Choose wisely. There is only one correct answer.
True
False
True. 403(b) plans are commonly called tax-sheltered annuities.
3.
The earnings of tax-deferred annuities are not taxed.
Choose wisely. There is only one correct answer.
True
False
False. They are taxed when they are withdrawn.
4.
Which of the following cannot be used to fund an individual retirement account?
Choose wisely. There is only one correct answer.
Collectibles
Stocks
Bonds
Mutual funds
Collectibles. As a rule, collectibles cannot be used to fund IRAs.
5.
How is FICA money obtained?
Choose wisely. There is only one correct answer.
From employee paychecks
From sales taxes
From income taxes
From the federal budget
From employee paychecks. It is deducted from income.
6.
Which of the following is not a tax shelter?
Choose wisely. There is only one correct answer.
Traditional IRA
403(b) plan
SIMPLE plan
None of the above
None of the above. All of them can grow tax-free.
Submit
DONE