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. -The income base on which Social Security tax is computed [increases each year | remains the same for long periods of time].

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 Pension Benefit Guarantee Corporation (PBGC)protects employees pensions from [inflation | bankruptcy].

Full retirement age is typically defined as ____ years of age.

If you are gradually vested in a retirement plan over a 6-year period,the plan is a:

Reduced early retirement benefits can be received at age 62.

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. -A self-employed person could set up a [Keogh | 403(b)] retirement plan.

Short-term retirement planning usually involves:

The advantage of profit-sharing plans that invest in their own company stock is that the minimum value of the stock is guaranteed.

Employees of a nonprofit corporation can contribute to a(n):

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

In short-term retirement planning you estimate the required level of retirement income as a percentage of current income,fund that amount,and then adjust that number every 3 to 5 years.

Self-directed retirement accounts such as Keogh and SEP accounts can be set up at:

Anyone with earned income can contribute to some type of IRA.

Integrating a retirement plan with Social Security benefits typically increases a retiree's retirement income.

Social Security benefits alone can usually fund a comfortable 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. -Lois,age 67,is receiving Social Security benefits.She received $25,000 in interest and dividends this year.Her Social Security benefits [will | will not] be reduced because of these earnings.

In the year 2027,a person will have to be minimum of _____ years to be able to retire with full social benefits.

Jamie has worked for ABC Printing for 5 years.During this period,ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she leaves ABC Printing?

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. -Money to make Social Security benefit payments comes from contributions from [employees only | employers only].

Funds to finance Social Security come from: