Retirement Planning and Investment Vehicles Quiz
Test your retirement planning knowledge with questions on IRAs, 401(k) plans, investment options, and more. Prepare for your financial future!
#1
Which of the following is a characteristic of a traditional Individual Retirement Account (IRA)?
Contributions are tax-deductible
Contributions are made with after-tax dollars
Withdrawals are penalty-free at any age
There are no income limitations for contributing
#2
What is the main advantage of investing in a 401(k) plan?
High liquidity
No contribution limits
Employer matching contributions
Tax-free withdrawals
#3
At what age can you start making penalty-free withdrawals from a traditional IRA?
#4
What is a characteristic of a Roth IRA?
Contributions are tax-deductible
Contributions are made with pre-tax dollars
Earnings grow tax-free
Withdrawals are mandatory at age 70 1/2
#5
Which investment option typically offers the highest potential return?
Savings account
Certificate of Deposit (CD)
Treasury bond
Stocks
#6
Which investment vehicle typically offers the highest level of risk?
Government bonds
Certificate of Deposit (CD)
Stocks
Savings account
#7
What is a characteristic of a Health Savings Account (HSA) in relation to retirement planning?
Contributions are tax-deductible
Withdrawals for non-medical expenses are penalty-free after age 65
Contributions can only be made by an employer
There are no contribution limits
#8
Which investment vehicle typically offers the least liquidity?
Money market account
Real estate investment
Stocks
Savings account
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