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Retirement Planning & Money Management Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Let's say that $5.00 is deducted from Amy's paycheck each pay period for FICA taxes. How much money is Amy's employer required to pay on her behalf in FICA taxes?

Question 2 2. When are taxes due for a Roth IRA conversion?

Question 3 3. A person with a defined benefit retirement plan receives which of the following?

Question 4 4. How might Social Security continue to be funded going forward?

Question 5 5. What is the 2014 contribution limit for eligible individuals under 50 to a Roth IRA?

Page 2

Question 6 6. Tiffany's employer set up a retirement account for her where she can contribute part of her salary. The plan also provides that her employer will make yearly contributions to her retirement account as well. Which of the following best describes the plan?

Question 7 7. Which of these is correct about a defined contribution retirement plan?

Question 8 8. What does the 'IRA' stand for in a Roth IRA account?

Question 9 9. What income source tends to be prominent during most of adulthood?

Question 10 10. What is a Roth IRA?

Page 3

Question 11 11. Justin makes $1000 per paycheck. He has a 401(k) plan and his employer has a 3% matching program. Justin decides he'd like to be more aggressive with his contributions, so he decides he's going to contribute 5% per paycheck. How much does this mean his employer will contribute per paycheck?

Question 12 12. Alex wants to retire but is not vested. Why is this a bad idea?

Question 13 13. When must you make contributions to a SEP IRA?

Question 14 14. Older adults are eligible for full Social Security benefits when they turn what age?

Question 15 15. Bob is expecting a retirement check of $50,000 so that he can roll it over into a new plan. The check is only for $40,000. Why is this?

Page 4

Question 16 16. The Social Security Act was enacted in which year?

Question 17 17. Identify the statement that is NOT correct about ERISA.

Question 18 18. What type of pension plan guarantees that the employee will receive a particular amount of benefit once he or she retires, even if the employer's investments don't do well?

Question 19 19. There is no income limit or conversion limit on a Roth IRA conversion.

Question 20 20. What is the amount of the penalty imposed by the IRS for non-qualified early withdrawal distributions?

Page 5

Question 21 21. FICA contributions go to a particular federal government account called the _____.

Question 22 22. 'SEP' in a 'SEP IRA' stands for '_____.'

Question 23 23. The Social Security Act was just one of many pieces of legislation enacted in an attempt to ease difficulties during the Great Depression. These acts were collectively known as which of the following?

Question 24 24. Which type of retirement plan is a large company most likely to offer today?

Question 25 25. What may an older person experience when his or her income needs are greater than can be covered by available sources of income?

Page 6

Question 26 26. How is a defined benefit plan different from a defined contribution plan?

Question 27 27. Which of the following is the enforcing department for ERISA?

Question 28 28. What is true of a fiduciary under ERISA?

Question 29 29. What term could you use to describe the amount of money you need each month to cover your expenses?

Question 30 30. Who can contribute to a SEP IRA?

Retirement Planning & Money Management Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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