Exam 19: Retirement Planning

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 percent? Round to the nearest dollar if needed. (a)$43,333 (b)$46,800 (c)$11,476 (d)$15,000

In determining the amount of money you will need for retirement,you should consider all of the following except

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

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

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

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

Retirement fund withdrawals are usually taxed as ________ income.

Under a SEP,an employee

To be eligible for Social Security full retirement benefits,a person must be retired and be at least 65 years old.

What would be the difference in the tax consequences of an $18,000 withdrawal from a Roth IRA versus a Traditional IRA if $15,000 represents long-term capital gains,$2,000 short-term capital gains,and $1,000 is interest? Assume a tax rate of 30 percent and a capital gains tax rate of 10 percent. (a)$5,200 more in taxes with a Traditional IRA (b)$4,800 more in taxes with a Traditional IRA (c)$5,400 more in taxes with a Traditional IRA (d)$5,400 more in taxes with a Roth IRA

A traditional IRA requires an individual to make withdrawals after age 70-1/2,whereas a Roth IRA does not.

List three sources of income when you retire.