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1.
You may take a joint life annuity with your cousin as a retirement distribution option.
True. You may take a joint life annuity option with anyone as long as your spouse (if alive) approves.
2.
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.
3.
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.
4.
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.
5.
Susan has an annuity that will make payments for 25 years. She has a _______.
Term certain annuity. A term certain annuity makes payments for a specific number of years.
6.
All of the following are retirement plans except the _______.
None of the above. Retirement plans include 401(k)s, Keoghs, and individual retirement accounts (IRAs), among others.