#1
What is a 401(k) plan?
A type of retirement savings plan offered by employers
ExplanationEmployer-sponsored retirement savings plan
#2
What is the maximum contribution limit for a traditional IRA in 2024?
$7,000
ExplanationMaximum annual contribution limit for traditional IRA
#3
What is the main advantage of a Roth IRA over a traditional IRA?
Tax-free withdrawals in retirement
ExplanationTax-free withdrawals upon retirement
#4
At what age can you start withdrawing from a 401(k) without penalty?
59 1/2
ExplanationAge of penalty-free withdrawal from 401(k)
#5
What is the vesting period in a 401(k) plan?
The period of time before employer contributions are fully owned by the employee
ExplanationDuration before full ownership of employer contributions
#6
Which of the following is NOT a qualified retirement plan?
Roth IRA
ExplanationNon-qualified retirement savings plan
#7
What is the 'catch-up' contribution limit for individuals aged 50 or older for a 401(k) in 2024?
$7,000
ExplanationAdditional contribution limit for older individuals in 401(k)
#8
Which of the following retirement plans is designed specifically for employees of public schools and certain tax-exempt organizations?
403(b)
ExplanationRetirement plan for specific employment sectors
#9
What is the maximum annual contribution limit for a SIMPLE IRA in 2024?
$13,500
ExplanationMaximum yearly contribution for SIMPLE IRA
#10
What is the key advantage of a 403(b) plan compared to a 401(k) plan?
Availability for certain nonprofit organizations and educational institutions
ExplanationAccessibility for specific organizational types
#11
Which of the following statements about Roth 401(k) plans is true?
Contributions are made after-tax
ExplanationPost-tax contributions for Roth 401(k)