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1.
A non-qualified annuity doesn't provide as much tax protection as a 401(k) plan because _______.
Contributions aren't pre-tax. There are no tax savings on the income you contribute to the annuity, even though the earnings are tax-deferred.
2.
As a general rule, the _______ you invest your money, the _______ that tax deferral can work for you.
Earlier / More. Tax deferral benefits greatly the earlier you start investing.
3.
If your employer matches your contributions to your 401(k) plan, what is the amount of the match?
The amount varies. Matching is not required by law, but an employer who does will match anywhere from 1 to 100% of your contribution.
4.
How do the contribution limits of SIMPLE and SEP plans compare to the contribution limits of traditional IRAs?
They are higher. An advantage of both plans is that they allow participants to contribute much more than a traditional IRA allows.
5.
Tax-deferral means _______.
You don't pay taxes on your retirement earnings until you withdraw them. Tax-deferral means your earnings are sheltered, though you may still be taxed on your contributions and on your savings when you withdraw them.
6.
What is the maximum percentage of your income that you can contribute to a Keogh plan?
100%. You can contribute up to 100%, up to a yearly dollar maximum.
7.
If you are still contributing to your IRA plan when you are 76 years old, you must therefore have _______.
Either of the above. Roth IRAs do not compel you to stop making contributions at age 73, and due to recent tax law changes, neither do traditional IRAs.