Retirement Planning and Qualified Plans Quiz

Test your knowledge on 401(k), IRA, and other retirement plans. Learn about contribution limits, penalties, and plan specifics.

#1

What is a 401(k) plan?

A type of retirement savings plan offered by employers
A type of health insurance plan
A government assistance program for seniors
A type of life insurance policy
#2

What is the maximum contribution limit for a traditional IRA in 2024?

$5,000
$6,000
$7,000
$8,000
#3

What is the main advantage of a Roth IRA over a traditional IRA?

Tax deduction on contributions
Tax-free withdrawals in retirement
Higher contribution limits
Access to funds before retirement without penalty
#4

At what age can you start withdrawing from a 401(k) without penalty?

55
59 1/2
65
70 1/2
#5

What is the vesting period in a 401(k) plan?

The period of time before you are eligible to participate
The period of time before employer contributions are fully owned by the employee
The period of time after retirement when withdrawals can be made penalty-free
The period of time after which the plan automatically enrolls participants
#6

Which of the following is NOT a qualified retirement plan?

401(k)
IRA
Roth IRA
403(b)
#7

What is the 'catch-up' contribution limit for individuals aged 50 or older for a 401(k) in 2024?

$5,000
$6,000
$7,000
$8,000
#8

Which of the following retirement plans is designed specifically for employees of public schools and certain tax-exempt organizations?

401(k)
457(b)
403(b)
IRA
#9

What is the maximum annual contribution limit for a SIMPLE IRA in 2024?

$12,000
$13,500
$15,000
$16,500
#10

What is the key advantage of a 403(b) plan compared to a 401(k) plan?

Higher contribution limits
Employer matching contributions
Access to investment options
Availability for certain nonprofit organizations and educational institutions
#11

Which of the following statements about Roth 401(k) plans is true?

Contributions are made pre-tax
Contributions are made after-tax
Withdrawals are subject to income tax
There are no contribution limits

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