Exam 14: Planning for Retirement

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Most people today must have worked in a job covered by Social Security for the equivalent of at least [4 years | 10 years] to be fully insured and therefore eligible for retirement benefit payments.

Social Security benefits for retirees less than 67 years of age may be reduced if:

Tax-free earnings can be received from investments in:

The portion of the principal and interest of an annuity that has not been paid to the annuitant prior to death is the _____ benefit.

Employees who have 401(k)plans also have to decide how to invest the funds in their plan.

The employer retirement plan that is intended to promote employee productivity and allows the employer to vary the amount of annual contributions is a:

In a Roth 401(k),contributions are tax deductible and withdrawals are taxable.

Employee contributions to _____ plans do not reduce taxable income.

Miles has no retirement plan at work.Therefore,$2,000 contributed to his regular IRA will be tax deductible.

Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -If you need to withdraw your money from an annuity very soon after you begin making contributions,there most likely will be a [small | large] surrender fee.

When one estimates retirement needs,one start with a projection of expenses stated in current dollars.

Which of the following plans does not require minimum distributions?

Annual increases in the Social Security benefit check are related to the:

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -The period during which annuity payments are made to the individual is called the [distribution | survivorship] period.

Which of the following is the requirement for an individual to qualify for full retirement benefits under the Social Security system?

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is:

The employers are cutting back on traditional pension plans and are offering defined benefit plans.

It really makes little difference whether you start retirement savings at age 25 or at age 45.

Under 401(k)plan,individuals over 50 years old are allowed to contribute more than others.