Retirement Planning Flashcards
6 cards from real RIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Retirement Planning flashcards as text
The annual contribution limit for 401(k) plans applies to:
Answer: Employee elective deferrals (with separate limits for total including employer contributions)
The employee elective deferral limit is separate from the total annual additions limit that includes employer contributions.
A defined benefit pension plan promises participants:
Answer: A specific monthly benefit at retirement based on a formula
Defined benefit plans promise a specific monthly retirement benefit, typically based on years of service and final salary.
Social Security retirement benefits can be claimed as early as age:
Answer: 62
Social Security retirement benefits can be claimed as early as age 62, but with a permanent reduction from the full retirement age benefit.
Which retirement account type allows contributions after age 73 without RMD requirements?
Answer: Roth IRA
Roth IRAs have no RMD requirements during the account owner's lifetime, allowing continued contributions and growth.
The 'rule of 55' allows employees to:
Answer: Withdraw from a 401(k) penalty-free at age 55 if they leave employment in or after the year they turn 55
The rule of 55 allows penalty-free 401(k) withdrawals for employees who separate from service in or after the year they turn 55.
ERISA's vesting requirements ensure that:
Answer: Employees earn nonforfeitable rights to employer contributions over time
ERISA vesting schedules specify when employees earn nonforfeitable rights to employer-contributed retirement benefits.
How this page was made: written with AI tools. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy