Exam 19: Retirement Planning

The traditional IRA allows tax-deductible contributions of up to $5,500 ($6,500 for those age 50 or older)in 2015 for individuals who are not covered by employer-sponsored retirement plans or meet income qualifications if they have an employer plan.

If you are far away from retirement,you should consider investing in ________ for your retirement account.

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

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

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

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

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

The best way to save for retirement is to

Use the following two columns of items to answer the matching questions below: -401(k)plan

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

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.

How much could a self employed individual earning $187,000 per year accumulate in a SEP plan if the individual invests the maximum allowed for 20 years at a return of 9%? Round to the nearest dollar if needed.

With which of the following retirement plans will your withdrawals not be subject to taxes if you are over 59 1/2 and have had the account for at least five years?

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

If you have worked for a company long enough to claim a portion of your employer-sponsored retirement plan,you are ________.

Your worst choice as an investment option for your 401(k)would be

You get a job with the Allred Corporation.Its retirement plan will pay you $250 a month for each year you work for the company; payments begin on your 65th birthday.You must work for the company for 10 years in order to qualify for the pension.This plan is a

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%?

With which of the following plans will you be able to most accurately predict your retirement income?

If you are about to invest in a stock that has excellent growth potential over the next few years and the investment is to be part of your retirement,the best place to do this would be in a