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Answers to the What's Your Retirement IQ? Quiz

1) Starting saving early takes advantage of:
a) Compound interest – Correct answer!
b) Rising interest rates
c) Tax credits

2) Which is NOT an IRA?
a) Roth
b) SEP
c) LSA – Correct answer!

3) You can withdraw from your IRA without penalties at:
a) 59.5 – Correct answer!
b) 62
c) 65

4) You don’t pay taxes on your:
a) Contributions to a Roth IRA
b) Allowed withdrawals from a Roth IRA – Correct answer!

5) How much can you contribute to your IRA per year?
a) $5,500 – Correct answer!
b) $7,000
c) $9,000

6) 401(k) plans are tied to your:
a) Insurance
b) Employer – Correct answer!
c) Spouse

7) 401(k) contributions always:
a) Reduce my taxable income – Correct answer!
b) Increase my taxable income

8) If you’re under 50, how much can you save per year in your 401(k)?
a) $10,500
b) $13,500
c) $16,500 – Correct answer!