Voluntary Deductions

Question 1

What is the difference between voluntary expenses and voluntary deductions?

Answer 1

1. Expenses employer will not take out of paycheck

2. Voluntary deductions that employers will take out of paycheck

Question 2

What is a pension?

Answer 2

A percentage of an employers salary that they can claim after working a set number of years or when they reach a certain age (determined by employer).

Question 3

What is the difference between a 401K and a 403B?

Answer 3

1. Regular profit (McDonalds, Walmart, etc)

2. Non-Profit (schools, police, etc)

Question 4

What does your employer NOT take out of your paycheck?

Answer 4

Car, food, house, kids, school

Question 5

Define subsidized

Answer 5

2 units pay bill (ex: insurance and you)

Ex: amity and mrs.tupper

Question 6

Premium must be payed…

Answer 6

Monthly

Question 7

What does GDP stand for?

Answer 7

Gross Domestic Product

Question 8

HSA?

Answer 8

Health Savings Account

Question 9

What is a will?

Answer 9

A document that states who gets what out of your stuff

Question 10

“Next of kin”?

Answer 10

A court appointed guardian if no family is around

Question 11

What are the basic two types of insurances?

Answer 11

Whole and term

Question 12

Whole insurance?

Answer 12

Coverage for life; can invest money in mutual funds

Question 13

What is a mutual fund?

Answer 13

A group of stocks put together to make one whole (to make a bigger profit)

Question 14

Term insurance?

Answer 14

Policy that needs to be reanalyzed after each term; if you die within term stated in contract, you get death benefits (coverage)

Question 15

What are the benefits of term insurance?

Answer 15

Cheaper, fixed premiums; no investing; allows other assets to accumulate (perhaps for retirement savings)

Question 16

Name some more information about whole insurance.

Answer 16

1) combo savings account
2) up to 10x more expensive than term
3) more commission for life insurance company

Question 17

How do both basic plans compare?

Answer 17

You must get regular physical exams

Question 18

Can you be kicked off insurance?

Answer 18

Yes

Question 19

True or false: are pensions pre-taxes?

Answer 19

True

Question 20

What does pre taxed mean?

Answer 20

Take money out of gross income and what’s left in paycheck is taxed

Question 21

True or false: it is wise to have multiple accounts, to diversify where you put your money

Answer 21

True

Question 22

True or false: people can claim pensions and social security

Answer 22

True

Question 23

401K and 403B can be claimed (in CT) at 59 1/2- true or false ?

Answer 23

True

Question 24

Are both types of retirement plans paid through the state pension program?

Answer 24

Yes

Question 25

IRA…

Answer 25

Individual Retirement Account (must open one up if 401K/403B are no offered by employer)

Question 26

If you claim your retirement plans before the designated age…

Answer 26

10% of what you take out is taxes

Question 27

Define a union

Answer 27

A group of people that protect the rights of workers

Question 28

How can you be in a union?

Answer 28

You must pay union dues each paycheck (goes into a separate pool of money)

Question 29

Are Union dues pre taxed?

Answer 29

Yes

Question 30

Unions provide…

Answer 30

“Employee insurance”

Question 31

Donations…

Answer 31

Are tax deductible and can be claimed during tax season (January 1 to April 15)

Question 32

Dental insurance…

Answer 32

Premiums paid; standard insurance (unlike life insurance); affordable

Question 33

Co-pay…

Answer 33

You pay money upfront and insurance pays rest

Question 34

Co-insurance…

Answer 34

Two types of insurances

Question 35

HMO…

Answer 35

A group of doctors together under one insurance company
a cap is put on how much money they can make
(Ex: Medicaid on HMO = doctors under medicAid)

Question 36

What do most all dental insurances cover?

Answer 36

1) 2 cleanings a year

2) an 80/20 split on dental work (80% covered by insurance, 20% paid by beneficiary)