Exam 19: Retirement Planning

Bob and Bonnie,husband and wife ages 56 and 58,have combined income of $80,000.What is the maximum combined IRA contribution that they can make in 2015?

To be eligible for Social Security retirement benefits on your own,you will need to have worked for the equivalent of at least 10 years (amassed 40 credits),earned the minimum required income each quarter,and contributed to Social Security through payroll taxes.

When you contribute to an employer sponsored retirement account,it is usually with ________ dollars.

Social Security replaces approximately ________% of a worker's average annual income from his or her working years.

When deciding whether to invest in a traditional IRA or a Roth IRA one would consider all of the following,except

Dave and Tammy are both employed but are eligible to contribute to a traditional IRA.If they each contribute $5,500 to their respective accounts,how much federal income tax will they save if they are in the 30% marginal tax bracket?

Use the following two columns of items to answer the matching questions below: -profit sharing

The Social Security system allows people to receive reduced benefits before their full retirement age.

What three factors do you need to calculate how much money you will accumulate by retirement?

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?

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

Social Security benefits are ________,as are Social Security ________ on your income.

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

Which of the following statements about IRAs is not true?

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 is short-term capital gains,and $1,000 is interest? Assume a tax rate of 30% and a capital gains tax rate of 10%.

In the past 20 years or so,many employers have shifted from defined-benefit to defined-contribution retirement plans.

The Keogh plan is another retirement savings option,which can supplement individual retirement accounts (IRAs)for employed persons.

If you are allowed to change investments in your retirement plan over time,you have a(n)________ plan.

Which of the following is true about a 401(k)plan?

If a person who qualified for Social Security benefits dies,all of the following are benefits provided to the survivors except