Personal Finance Chp 3 Flashcards
Retirement plan for self employed
Sell
Gross tax free
Roth IRA
The typical retirement plan found in most corporation
401k
Used for college savings
Esa
The typical retirement plan found in non profit groups such as a schools and hospital
403b
Pre-tax means the government is letting you invest money for taxes have been taken out
True
Savings bonds are you good way to save for college
False
Never borrow money from your retirement plan unless you’re trying to avoid bankruptcy
True
When you leave a company don’t move your money is on the retirement accounts
False
And IRA is a specific type of investment
False
The Roth IRA grows
Tax free
In educational savings account ESA is for
College
Which of the following is not a retirement plan
529 (401k, 403b, 457]
Which is not a benefit of the Roth IRA
Unlimited contribution
What should you do with your retirement accounts when you leave a company
Direct transfer
Never save for college using
Pre-payed tuition, .. savings bonds
Baby stepn5
College
Once the emergency fund is in place you should………….which falls within a long-term investing for wealth building
Retirement plan and college funding
Baby step one
1000
Baby step 2
Debt snowball
Baby step 3
3-6 months of expenses
Baby steps to 4
Investing 15%of your household income
Tax favored
The. Investment is in a qualified plan or has a special tax treatment
SEPP
Simplified employee pension plan
IRA
Individual retirement arrangement
Why Roth IRA
Has more choices
Higher bracket
Tons of flexibility
Flexibility of a Roth IRA
Tax-free and penalty free withdrawals
After 5 years
401(k)
Asset of the company
403B
Found in non profit organization churches hospitals schools
457
Deferred compensation government employees
