AFK Retirement Planning Flashcards

Which Social Security claiming strategy maximizes lifetime benefits for a healthy individual expected to live well beyond average life expectancy?

Answer: Delaying until age 70

Delaying Social Security to age 70 earns delayed retirement credits (8% per year after full retirement age), maximizing monthly benefits for long-lived individuals.

What is the maximum employee elective deferral limit for a 401(k) plan in 2024?

Answer: $23,000

The 2024 employee elective deferral limit for 401(k) plans is $23,000.

In a 403(b) plan, who is the typical eligible employer?

Answer: Tax-exempt organizations and public schools

403(b) plans are retirement plans available to employees of public schools and tax-exempt organizations such as nonprofits and hospitals.

What does vesting in a 401(k) employer match refer to?

Answer: The employee's ownership of employer-contributed funds over time

Vesting schedules determine when employees gain full ownership of employer matching contributions, with full vesting typically occurring after a set number of years.

Which retirement plan is specifically designed for self-employed individuals and small business owners with no employees other than a spouse?

Answer: Solo 401(k)

A Solo 401(k) (Individual 401(k)) is designed exclusively for self-employed individuals with no full-time employees other than a spouse.

Under the Social Security full retirement age rules, what is the full retirement age for individuals born in 1960 or later?

Answer: 67

For individuals born in 1960 or later, the full Social Security retirement age is 67.