Voluntary Deductions Flashcards
What is the difference between voluntary expenses and voluntary deductions?
- Expenses employer will not take out of paycheck
2. Voluntary deductions that employers will take out of paycheck
What is a pension?
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).
What is the difference between a 401K and a 403B?
- Regular profit (McDonalds, Walmart, etc)
2. Non-Profit (schools, police, etc)
What does your employer NOT take out of your paycheck?
Car, food, house, kids, school
Define subsidized
2 units pay bill (ex: insurance and you)
Ex: amity and mrs.tupper
Premium must be payed…
Monthly
What does GDP stand for?
Gross Domestic Product
HSA?
Health Savings Account
What is a will?
A document that states who gets what out of your stuff
“Next of kin”?
A court appointed guardian if no family is around
What are the basic two types of insurances?
Whole and term
Whole insurance?
Coverage for life; can invest money in mutual funds
What is a mutual fund?
A group of stocks put together to make one whole (to make a bigger profit)
Term insurance?
Policy that needs to be reanalyzed after each term; if you die within term stated in contract, you get death benefits (coverage)
What are the benefits of term insurance?
Cheaper, fixed premiums; no investing; allows other assets to accumulate (perhaps for retirement savings)
Name some more information about whole insurance.
1) combo savings account
2) up to 10x more expensive than term
3) more commission for life insurance company
How do both basic plans compare?
You must get regular physical exams
Can you be kicked off insurance?
Yes
True or false: are pensions pre-taxes?
True
What does pre taxed mean?
Take money out of gross income and what’s left in paycheck is taxed
True or false: it is wise to have multiple accounts, to diversify where you put your money
True
True or false: people can claim pensions and social security
True
401K and 403B can be claimed (in CT) at 59 1/2- true or false ?
True
Are both types of retirement plans paid through the state pension program?
Yes
