Just the answers please
21. I you have $3,000 invested in a Roth IRA, what is true about your contribution? MULTIPLE CHOICE Read each item carefully then select the best answer 16. The company Jason wprks for matches his 4010o ontributionePto5% Jason takes advantage of this bby maximining his contribution amount to $200 per month At the end of one year, how money, so it will grow tax free h. You 4. You have already paid taxes on the much money will be in his account? will pay taxes only on the growth a. $1,200 b. $2.400 c. $4,800 d. 5,000 of $3,000. c. You have d. Both a and b maxed out your contribution. 17. What definition best explains an IRA? 22. Which of the following is a good way to save for college? a. A type of investment at a bank b. A type of investment at a bank or investment firm that has good tax benefits c. The tax treatment on virtually any type a. ESA b. Life insurance c. Pre-paid college tuition d. Savings bonds 23. Using the Rule of 72, how long it will take your money to double at 12% interest d. Investment that uses pre-tax dollars 18. The primary difference between the Roth IRA a. 6 years b. 7.2 years c. 8 years d. 9 years and a traditional IRA is: a. The IRA allows a contribution amount of $5,000 for non-income producing spouses; the Roth IRA doesn't. b. The Roth IRA grows tax free; the 24. When seeking a financial counselor to help you with your investments, always go with: traditional IRA doesn't. contributions to a traditional IRA are after-tax. Roth IRA doesn't. c. Contributions to your Roth are pre-tax a. A close family member or friend because you will be helping each other out and uses all of the right vocabulary teacher who explains everything to you five years experience d. A traditional IRA grows tax free; the b. A financial counselor who is sophisticated c. A financial counselor with the heart of a d. A financial counselor who has at least 19. Under which condition are you not able to make a tax-free withdrawal from your Roth IRA? a. Over 59 and a one half years old b. First-time home purchase up to $10,000 c. Career change and temporary drop of income 25. What does Baby Step 5 say about saving for d. Death or disability your children's college? a. Use tax-favored plans b. Use pre-paid college tuition c. Use a Certificate of Deposit d. Use insurance or savings bonds 0. What is the best option for your retirement plan when you leave a company? a. Have the money sent to you and deposit it into a new IRA within 60 days. b. Do a direct transfer into an IRA. c. Leave the plan where it is so it carn continue to accrue interest. d. Cash out the plan and invest in good mutual funds. FOUNDATIONS in PERS
