CFC Retirement Planning

Question 1

What is the 2024 annual contribution limit for a 401(k) plan for employees under age 50?

Accepted Answer

$23,000

Answer

$7,000

Answer

$66,000

Answer

$15,500

Question 2

Under IRS rules, required minimum distributions (RMDs) from traditional IRAs must generally begin at age:

Accepted Answer

73

Answer

59½

Answer

65

Answer

70½

Question 3

Which retirement plan feature allows employees to make after-tax contributions that grow tax-free?

Accepted Answer

Roth 401(k)

Answer

Traditional 401(k)

Answer

SEP-IRA

Answer

Defined benefit plan

Question 4

A defined benefit pension plan provides retirement income based on:

Accepted Answer

A formula using salary and years of service

Answer

Account balance at retirement

Answer

Employee contributions only

Answer

Investment returns in the plan

Question 5

The '4% rule' in retirement planning suggests retirees can withdraw 4% of their initial portfolio annually with a high probability of:

Accepted Answer

Not outliving assets over a 30-year retirement

Answer

Maximizing investment returns

Answer

Avoiding all taxes on withdrawals

Answer

Generating guaranteed income for life

Question 6

Which retirement account allows self-employed individuals to contribute both as employer and employee, potentially contributing up to 25% of compensation plus elective deferrals?

Accepted Answer

Solo 401(k)

Answer

Simple IRA

Answer

Traditional IRA

Answer

Roth IRA