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Do you know enough to plan your retirement?
The concept seems simple. Set aside a little money each year that you don't touch until after you've retired. But there's more to retirement planning than that. Take this quiz to find out how much you know.
1.
Under current law, if you retire today, the earliest age you can start taking retirement Social Security distributions is:
65.
62.
68.
70.
2.
With a traditional tax-deductible IRA, you must begin taking distributions by what age?
65.
68 1/2.
75.
70 1/2.
3.
With a Roth IRA, the latest age by which you have to take distributions is:
70 1/2.
75.
65.
Never.
4.
One of the differences between a Roth IRA and a traditional IRA is:
You can deduct your traditional IRA contribution the year you make it, and you can't with a Roth.
You can deduct your Roth IRA contribution the year you make it, and you can't with the traditional IRA.
The tax-deductible IRA contribution is a credit against your taxes, so if you put in $2,000, you pay $2,000 less in taxes.
There is no difference between the two.
5.
The difference between a Roth IRA and a traditional IRA during the 'accumulation period' -- after you put your money in and before you take it out -- is:
You get taxed on your Roth earnings every year, and not on your traditional IRA earnings.
You get taxed on the traditional IRA and not on the Roth.
With a traditional IRA, if you have a loss, you can claim it that year, which you can't do with a Roth.
You don't pay taxes on either plan.
Data providers
Copyright © 2009
Thomson Reuters
.
Click for Restrictions.
Quotes supplied by
Interactive Data
.
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