Retirement Accounts

Question 1

A retirement investment account you can only get through your EMPLOYER and uses PRE-TAX money:

Answer 1

401(k)

Question 2

A retirement investment account available to anyone with earned income (NOT employer based) and uses PRE-TAX money:

Answer 2

IRA (Individual Retirement Account)

Question 3

A retirement investment account you can only get through your EMPLOYER and uses AFTER-TAX money:

Answer 3

ROTH 401(k)

Question 4

A retirement investment account available to anyone with earned income (NOT employer based) and uses AFTER-TAX money:

Answer 4

ROTH IRA

Question 5

True/False: The main benefit of ROTH IRA and ROTH 401(k) accounts is that your earnings grow tax free.

Answer 5

True

Question 6

True/False: The main benefit of traditional IRA and 401(k) accounts is that they are tax-deferred (not taxed until retirement)

Answer 6

True