Exam 19: Retirement Planning

Social Security provides sufficient income to support the lifestyles of most individuals.

Retirement fund withdrawals are usually taxed as ________ income.

Which of the following employers might offer you a SEP?

How much to contribute to a retirement plan should not depend on your

If your employer offers a retirement plan, that should be the first plan that you consider because your employer will likely contribute to it.

An annuity is similar to an IRA in that money accumulates tax-free during the build-up period.

Social Security is all of the following, except

A(n) ________ is a financial contract that provides annual payments until a specified year or until one's death.

Defined-contribution employer-sponsored retirement plans provide you with a specific amount of income when you retire, based on factors such as your salary and years of employment.

Contributing to which of the following will give you an immediate tax benefit?

If you are contributing to a 401(k) plan at work, you can still contribute to

Under federal guidelines, the 2018 maximum contribution to a 401(k) is

More than 80% of all employers offering 401(k) plans match a portion or all of an employee's contributions.

A ________ is established to transfer assets tax-free from a company retirement plan.

In retirement, you can earn income and still receive Social Security benefits.

Both the one-participant 401(k) plan and the Simplified Employee Pension (SEP) plan are available to self-employed individuals for retirement savings.

Use the following two columns of items to answer the matching questions below: -401(k) plan A)a defined contribution plan for small firms (1-10 employees) B)a defined contribution plan in which the employer contributes to employee retirement accounts based on a specified profit formula C)a defined contribution plan that allows employees to contribute up to $18,500 per year in 2018 on a pre-tax basis D)a retirement plan in which the employer contributes its own stock to the employee's retirement account

The maximum amount that can be contributed to an IRA annually is adjusted periodically for inflation.

Jim is self-employed and had a "banner" year in 2018, earning $350,000 net income. He wanted to make a significant contribution to his retirement planning and set up a SEP plan. Since the plan allows for contributions up to 25% of net income, his maximum contribution was

All defined-benefit plans have the same qualifications for determining when employees are vested.