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1.
The Keogh plan is specially made for self-employed individuals.
True. The Keogh is also for all non-incorporated businesses.
2.
A _______ is the taking of funds from a plan before one is allowed to.
Premature distribution. A distribution taken before one is eligible is a premature withdrawal or premature distribution.
3.
Which annuity's payments change according to its investment performance?
Variable annuity. Although the payments from the other choices may vary, those variations would have to be variable annuities in order to change according to investment performance.
4.
Which of the following cannot be used to fund an individual retirement account?
Collectibles. As a rule, collectibles cannot be used to fund IRAs.
5.
How is FICA money obtained?
From employee paychecks. It is deducted from income.
6.
What is the general name for an investment that lets you legally avoid many taxes?
Tax shelter. Annuities and 403(b) plans can be tax shelters, and usually are.