1)Retirement planning will become a priority at some point during your professional career. If you recognize that your current level of annual savings is not sufficient to support your projected retirement income need, then which of the following actions would help the situation, given that you have another 15 year until the start?

(1) increase your annual contribution amount

(2) sell your home and simply rent a property

(3) consider ways of developing multiple sources of income

(4) reposition your investment portfolio for greater growth

(5) assume that Social Security and Medicare will be sufficient

Group of answer choices

1, 2 and 5

2, 3 and 5

1, 3 and 4

3, 4 and 5

2)Qualified retirement plans are intended to serve the rank-and-file employee (not just the highly compensated employer or business owner). Given that your employer sponsors a 401(k) profit sharing plan, which of the following plan eligibility standards would NOT be allowed by rules governing qualified plans?

Group of answer choices

The employer could require you to wait for three years, with a 6-year cliff vesting schedule.

The employer could require you to wait one year, with a maximum vesting schedule of either a 5-year cliff or a 2-to-6 vesting schedule.

The employer could allow you to participate in the plan immediately.

The employer could require you to wait two years, given a 100% vesting schedule.

3)

Which of the following statements regarding a traditional IRA is INCORRECT?

Group of answer choices

The maximum annual contribution for someone just out of college (2020) would be $6,000 per year.

Eligibility for a pre-tax IRA contribution (i.e., tax-deductible contribution) is subject to phase-out based on income.

Anyone with income from any source is eligible to make a contribution to an IRA.

The spouse of an active wage earner is eligible to make a contribution to a spousal IRA.