How many credits are required for Social Security retirement program eligibility?

a. 4

b. 10

c. 40

d. an average of four for every year on which FICA taxes were paid

You are employed by a major consumer electronics firm. How is the payment of your Social Security taxes divided?

a. Your employer pays the entire tax.

b. You pay the entire tax.

c. You and your employer pay an equal amount of tax.

d. You pay the tax on income up to the maximum taxable annual earnings and the employer pays the tax on any excess income.

Which of the following must be taken into account when estimating retirement expenses more than a few years in the future?

a. leverage

b. inflation

c. compounding

d. Social Security

Which of the following is a contract made with an insurance company that provides for a series of payments to be received at stated intervals for a fixed or variable amount of time?

a. mutual fund

b. annuity

c. IRA

d. pension

Self-employed people can shelter current self-employment income from taxation and build a retirement fund through a

a. SEC plan.

b. 401(k) salary-reduction plan.

c. 403(b) salary-reduction plan.

d. Keogh plan.

Which of the following is not one of the acceptable reasons that are sometimes permitted for withdrawing money early from a tax-sheltered retirement account without penalty?

a. purchase of a home

b. education expenses for a child or yourself

c. medical expenses

d. payment of credit card and other consumer debts

When changing jobs, the type of IRA used to transfer funds from an employer-sponsored plan into an individual retirement account is called a(n)

a. rollover IRA.

b. annuitized IRA.

c. employer-funded IRA.

d. Roth IRA.

The dollar amount of your retirement benefit under Social Security will most depend upon

a. the number of credits you earn.

b. whether you are married or single.

c. your employment income over your working years.

d. the number of years you work.