Retirement Plans and Investment Options Quiz

Take our retirement plans and investment options quiz to see how well you understand tax-deferred accounts, contribution limits, investment strategies, and more!

#1

Which of the following retirement plans is not tax-deferred?

401(k)
Traditional IRA
Roth IRA
Pension Plan
#2

What is the purpose of diversification in investment?

To maximize returns
To minimize risk
To ensure tax advantages
To facilitate easy withdrawal
#3

Which of the following investment options provides a fixed rate of return over a specified period?

Stocks
Bonds
Mutual Funds
Annuities
#4

What is the primary purpose of an emergency fund?

To finance vacations
To cover unexpected expenses
To invest for retirement
To purchase luxury items
#5

Which of the following is NOT a common type of retirement plan?

Keogh Plan
Roth 401(k)
Savings Account
457 Plan
#6

What is the term used to describe the time period before retirement during which an individual invests and accumulates assets?

Golden years
Pre-retirement
Wealth-building phase
Pension era
#7

What is the maximum annual contribution limit for a 401(k) plan in 2024?

$15,000
$19,500
$25,000
$30,000
#8

Which investment option typically offers the highest potential returns but also involves the highest level of risk?

Savings Account
Government Bonds
Stocks
Certificate of Deposit (CD)
#9

What is the earliest age at which you can typically start withdrawing funds from a traditional IRA penalty-free?

55
59½
62
65
#10

Which of the following is NOT a characteristic of a Roth IRA?

Contributions are tax-deductible
Qualified distributions are tax-free
No age limit for contributions
No required minimum distributions
#11

Which of the following retirement plans allows for catch-up contributions for individuals aged 50 and older?

401(k)
Roth IRA
SEP IRA
Health Savings Account (HSA)
#12

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

401(k)
Roth IRA
SEP IRA
403(b)
#13

What is the 'Rule of 72' used for in finance?

Calculating mortgage interest
Estimating investment growth
Determining retirement age
Budgeting monthly expenses
#14

In which retirement plan are withdrawals taxed as ordinary income upon distribution?

Roth IRA
Traditional IRA
401(k)
Roth 401(k)
#15

What is the primary benefit of investing in real estate for retirement?

High liquidity
Low maintenance
Potential for rental income and appreciation
Guaranteed returns
#16

Which of the following is NOT a characteristic of a 403(b) plan?

Available to employees of public schools
May include employer matching contributions
Allows for catch-up contributions for those aged 50 and older
Contributions are tax-deductible
#17

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

10%
15%
20%
50%

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