61) Upon retirement, people typically have how many main sources of income?
A) Two – Social Security benefits and retirement benefits
B) Two – Social Security benefits and personal savings
C) Three – Social Security benefits, personal savings, and retirement benefits
D) Four – Social Security benefits, personal savings, retirement benefits, and inheritance benefits
62) A qualified retirement plan:
A) requires employees to pay taxes on current income, but not retirement distributions.
B) prohibits employees from paying tax on contributions to the plan.
C) favors highly compensated employees over lower-paid workers.
D) prevents employers from taking a tax deduction.
63) Employee retirement benefits are governed by:
A) COBRA.
B) the Social Security Act.
C) ERISA.
D) the Equal Pay Act.
64) Which of the following guarantees that accrued retirement benefits will be given to retirement plan participants when they leave the employer?
A) Pension
B) Vesting
C) Portable benefits
D) Flexible spending
65) You have worked for Steel Workings for nearly eight years. Your employee-provided funds and employer-contributed funds are all vested. You intend to quit your job at Steel Workings to take another job. Your retirement funds will most likely:
A) be lost upon your voluntary separation from Steel Workings.
B) be decreased by half upon your voluntary separation from Steel Workings.
C) stay with you when you move from Steel Workings.
D) not be contributed to by your new employer.
66) A(n) ________ plan is a retirement plan for which the employer assumes all the risk of meeting the plan’s obligation and which provides the employee with a safe, secure, predictable retirement income.
A) 401(k)
B) portable benefit
C) IRA
D) defined benefit
67) In a ________ plan, the employer puts in a specific amount and employees may contribute additional funds. Payout depends on the success of the investments in the retirement plan.
A) pension
B) defined contribution
C) portable benefit
D) defined benefit
68) The individual retirement account (IRA) is primarily appropriate for:
A) employees without company pension plans.
B) employees of small businesses.
C) self-employed workers.
D) small business owners.
69) What is the maximum contribution for 401(k) plans?
A) 15% of salary up to $16,500
B) 25% of gross income up to $49,000
C) 50% of gross income up to $22,300
D) 100% of salary up to $5,000
70) Roth IRAs differ from traditional IRAs in what way?
A) An employee is allowed to contribute more annually to a traditional IRA than to a Roth IRA.
B) An employee is allowed to contribute more annually to a Roth IRA than to a traditional IRA.
C) Traditional IRAs are restricted to people with adjusted gross incomes of less that $120,000 as a single person or $177,000 for married people filing joint returns. Roth IRAs are not restricted in this way.
D) Roth IRAs are restricted to people with adjusted gross incomes of less than $120,000 as a single person or $177,000 for married people filing joint returns. Traditional IRAs are not restricted in this way.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more