Taxation of Retirement Accounts and Insurance Products Quiz

Test your knowledge on tax implications of retirement accounts & insurance products. Explore key questions on IRA, 401(k), Roth IRA, & insurance policies.

#1

Which retirement account allows for tax-deferred growth of investments?

401(k)
Traditional IRA
Roth IRA
Brokerage account
#2

Which insurance product provides a tax-free death benefit to beneficiaries?

Whole life insurance
Term life insurance
Variable life insurance
Universal life insurance
#3

Which retirement account is specifically designed for self-employed individuals or small business owners?

401(k)
Traditional IRA
Roth IRA
SEP IRA
#4

Which insurance product offers coverage for a specified period and does not accumulate cash value?

Term life insurance
Whole life insurance
Variable life insurance
Universal life insurance
#5

Which insurance product offers a death benefit and a cash value component that can grow over time?

Term life insurance
Whole life insurance
Variable life insurance
Universal life insurance
#6

What is the penalty for early withdrawal from a traditional IRA before the age of 59½?

10%
5%
20%
25%
#7

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

$5,500
$6,000
$7,000
$8,000
#8

What is the penalty for early withdrawal from a Roth IRA earnings before the age of 59½?

10%
5%
20%
No penalty
#9

Which insurance product offers both a death benefit and an investment component?

Term life insurance
Whole life insurance
Variable life insurance
Universal life insurance
#10

At what age can you start taking penalty-free withdrawals from a traditional IRA?

59½
55
60
65
#11

Which insurance product allows policyholders to invest premiums in various investment options?

Whole life insurance
Term life insurance
Variable life insurance
Universal life insurance
#12

Which of the following retirement accounts does not require mandatory minimum distributions (RMDs) starting at age 72?

Traditional IRA
Roth IRA
401(k)
SEP IRA
#13

Which retirement account allows for contributions made with pre-tax dollars but withdrawals are taxed as ordinary income?

Roth IRA
401(k)
SEP IRA
Roth 401(k)
#14

Which retirement account is not subject to income restrictions for contributions?

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

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

Tax-free withdrawals
Tax-deductible contributions
Tax-deferred growth
Tax-free contributions
#16

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

401(k)
Traditional IRA
Roth IRA
SEP IRA

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