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.
Premiums are used to figure out how much a variable annuity will pay its holder.
Choose wisely. There is only one correct answer.
False. Annuity units are used for this purpose.
2.
Which of the following is not a tax shelter?
Choose wisely. There is only one correct answer.
None of the above. All of them can grow tax-free.
3.
The Roth IRA features tax-free distributions.
Choose wisely. There is only one correct answer.
True. In return, the contributions to it must have been taxed.
4.
A _______ is the taking of funds from a plan before one is allowed to.
Choose wisely. There is only one correct answer.
Premature distribution. A distribution taken before one is eligible is a premature withdrawal or premature distribution.
5.
A qualified retirement plan is one that receives _______ benefits.
Choose wisely. There is only one correct answer.
Tax. It usually means a deferral of taxes until some later date.
6.
Within how much time must a retirement plan rollover occur if it is to avoid federal taxes?
Choose wisely. There is only one correct answer.
Sixty days. This requirement is written into IRS law.