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1.
Your deadline for beginning to make minimum withdrawals from your retirement plan may be ______.
April 1 following the year you turn 73. If your plan is an employer plan, you have one of two possibilities: your deadline is April 1 of the year following the later of either the year you attain age 73 or the year you retire.
2.
You may take money out of your retirement plan for any reason, at any time without IRS penalty, after you reach the age of _______.
59½. You may take penalty-free distributions from your retirement plan after you reach age 59½.
3.
A defined benefit plan automatically builds the minimum required distribution into its payout options.
True. Defined benefit plans offer annuity payments that meet your minimum required distributions.
4.
Most retirement plans are tax-exempt.
False. Most retirement plans offer tax-deferred earnings. You do not pay taxes on the earnings until you withdraw funds from an account.
5.
To take best advantage of the tax rules, you usually should pay as much income tax as possible during your working years, so that you don't have to pay it later, during retirement.
False. You should deduct as much tax as possible during your working years, since you likely will be in a lower income bracket–and will be paying taxes at a lower rate–when you have retired.
6.
Which annuity method pays you for a fixed period only?
Term certain. As their name implies, term certain annuities pay for only a specific time period.