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LET’S PRACTICE
Name: _____________________________________________________________________________
8. With regard to IRAs and 401Ks what’s the significance of age 59 ½? _ ____________________________________________________________________ 9. As a general rule, under the Age Discrimination in Employment Act (ADEA) of 1986 its considered age discrimination to force a person to retire before a. age 55 c. age 75 b. age 80 d. any age 10. Name the three sources which made up the traditional triple pay of retirement funds? _ ____________________________________________________________________ 11. Liam was making yearly contributions of $5000 to his retirement fund, but in the last few years he’s reduced the contributions to $2000 because he wants to have more take-home pay. His employer matches contributions up to 6% of his salary. Liam makes $45,000. Has he “maxed out” his 401K? What does that mean? _ ____________________________________________________________________ _ ____________________________________________________________________ 12. Currently, the age at which a person can begin collecting partial Social Security benefits is ___, but if they wait until age ___, they are entitled to full benefits. PRODUCT PREVIEW a. 52; 60 b. 62; 67 c. 65; 67 d. 55; 59 ½
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13. T F Annual contributions to a Traditional IRA may be deducted from income to lower taxes.
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14. T F Annual contributions to a Roth IRA may be deducted from income to lower taxes.
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15. T F Earnings on a Roth IRA are taxed after age 59 ½ if the retiree starts taking distributions.
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16. T F Earnings on a Traditional IRA and Roth IRA are tax deferred.
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17. The maximum annual contribution to both a Traditional and Roth IRA is: a. $5,500 c. $2,500 b. $10,000 d. there is no maximum
Chapter 10 | Your Risky Retirement 194
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