Exam 19: Retirement Planning

If an employee earning $75,000 per year annually for 20 years contributes 6% to their 401(k) plan and the employer matches 3%, plus contributes $5000 to a Roth IRA annually for 20 years, how much money will the employee have at the end of 20 years assuming all funds are invested at 6% per annum?

Under a defined-contribution plan, there are specific guidelines for all of the following, except

Which of the following is not a characteristic of a traditional IRA?

The best way to save for retirement is to

Under a SEP, an employee

If an employer matches contributions to a 401(k) up to a maximum of $1,800 (employer and employee each contribute $1,800) and an additional $2,200 is contributed by the employee, how much will the employee have in 35 years if the investments in the 401(k) earn an average of 9%?

The amount of income that you receive from Social Security when you retire is dependent on the number of years you earned income and your average level of income.

Once you leave a job with an employer, you will probably forfeit your retirement account unless you have been with the company for 15 or more years.

How much would need to be contributed each year for 30 years to accumulate $1,300,000 assuming a return on the investments of 8%? Round to the nearest dollar if needed.

If a person who qualified for Social Security dies, which of the following are provided to the survivors?

Since many employers have eliminated defined-benefit retirement plans, it is important that the employee

Contributions to a Roth IRA are not tax deductible initially and, therefore, very few people are interested in using a Roth IRA.

An individual retirement account in which capital gains and earnings on your investments will not be taxed upon withdrawal at age 59 1/2 is a(n) ________.

If you are close to retirement, you should consider investing in ________ for your retirement account.

In estimating the future value of your retirement investments, you would consider all of the following, except

Educational institutions and charitable organizations offer a defined-contribution plan called a(n) ________ plan.

As you plan for retirement, you should consider Social Security benefits as a supplement to

If you are age 60, which of the following investments would you most likely not consider?

The tax characteristics of a Roth IRA and a traditional IRA differ in terms of initial contributions and withdrawals after retirement.

When you contribute to a defined-contribution retirement plan, your employer often puts in money too, and you are able to defer taxes on these contributions.