Retirement Planning and Tax-Advantaged Accounts Quiz

Test your knowledge on retirement planning and tax-advantaged accounts with these questions covering 401(k), IRA, HSA, and more.

#1

Which of the following is a tax-advantaged retirement account?

Savings Account
IRA (Individual Retirement Account)
Checking Account
Certificate of Deposit (CD)
#2

What is the penalty for early withdrawal from a traditional IRA or 401(k) before the age of 59½?

5%
10%
15%
20%
#3

In a 401(k) plan, what is the purpose of the vesting period?

Determines eligibility for participation
Allows for catch-up contributions
Ensures employees have access to their contributions
Governs the ownership of employer-contributed funds over time
#4

What is the penalty for failing to take the required minimum distribution (RMD) from a retirement account?

5%
10%
25%
50%
#5

In a 401(k) plan, what is the significance of the 'catch-up' contribution provision?

Allows for higher contributions by employees in their 60s
Provides a grace period for late contributions
Enables employees over 50 to contribute additional funds
Exempts certain employees from contribution requirements
#6

What is the maximum annual contribution limit for a 401(k) plan in 2022?

$5,000
$10,000
$19,500
$50,000
#7

Which retirement account allows for tax-free withdrawals if certain conditions are met?

Traditional IRA
Roth IRA
401(k)
Pension Plan
#8

What is the catch-up contribution limit for individuals aged 50 and older in a 401(k) plan in 2022?

$5,000
$6,000
$10,000
$15,000
#9

Which tax-advantaged retirement account has required minimum distributions (RMDs) starting at age 72 (or 70½ if born before July 1, 1949)?

Roth IRA
Traditional IRA
401(k)
SEP IRA
#10

Which of the following retirement accounts is specifically designed for self-employed individuals or small business owners?

401(k)
Roth IRA
SIMPLE IRA
457(b)
#11

At what age can an individual start making penalty-free withdrawals from their IRA or 401(k) accounts?

55
59½
65
70½
#12

Which of the following is a characteristic of a Health Savings Account (HSA) in relation to retirement planning?

Contributions are not tax-deductible
Withdrawals for qualified medical expenses are tax-free
No contribution limits
Available only for individuals below 30 years old
#13

What is the primary benefit of a 403(b) plan compared to a 401(k) plan?

Higher contribution limits
No employer matching contributions
Available only to government employees
Designed for nonprofit organizations and educational institutions
#14

Which retirement account allows for penalty-free withdrawals for first-time homebuyers (up to a certain limit)?

Traditional IRA
Roth IRA
401(k)
HSA
#15

Which tax-advantaged retirement account is funded with after-tax dollars but allows tax-free withdrawals in retirement?

401(k)
Traditional IRA
Roth IRA
SEP IRA

Sign In to view more questions.

Sign InSign Up

Quiz Questions with Answers

Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.

Test Your Knowledge

Craft your ideal quiz experience by specifying the number of questions and the difficulty level you desire. Dive in and test your knowledge - we have the perfect quiz waiting for you!

Similar Quizzes

Other Quizzes to Explore