Employer-Sponsored Retirement Plans

Ready to test your knowledge? You'll have ten multiple choice questions to answer. Click on each question to reveal the question and multiple choice answers. After you've completed answering all ten questions, click "Grade Me!" at the end of the quiz to see how you did.

Question 1

If you're eligible to participate in a 403(b) plan instead of a 401(k) plan at work you're likely an employee of?

(A) A public school system.	Correct Incorrect
(B) A church or synagogue.	Correct Incorrect
(C) A non-profit hospital.	Correct Incorrect
(D) All of the above.	Correct Incorrect

Question 2

The term "401(k)" comes from?

(A) The section of the Internal Revenue Service tax code that outlines it.	Correct Incorrect
(B) The maximum amount of income you can have and still contribute ($401,000).	Correct Incorrect
(C) The amount of revenue your employer must earn ($401,000) before offering a plan to employees.	Correct Incorrect
(D) The amount ($401) you can contribute monthly to the plan.	Correct Incorrect

Question 3

If you have money invested in a 401(k) plan at one employer and change jobs which of the following can you do with your account balance?

(A) Move it into a 401(k) plan offered by your new employer.	Correct Incorrect
(B) Deposit it into an IRA account.	Correct Incorrect
(C) Leave it in your previous employer's plan.	Correct Incorrect
(D) All of the above.	Correct Incorrect

Question 4

Who is responsible for the investment decisions associated with your 401(k) account balance?

(A) Your employer.	Correct Incorrect
(B) Your immediate supervisor.	Correct Incorrect
(C) Your plan administrator.	Correct Incorrect
(D) You, the plan participant.	Correct Incorrect

Question 5

Which of the following ARE NOT benefits of participating in a 401(k) retirement plan at work?

(A) To be eligible for potential employer matches to your contributions.	Correct Incorrect
(B) To allow your savings and investments to grow on a tax-deferred basis.	Correct Incorrect
(C) To reduce your taxable income.	Correct Incorrect
(D) Penalty-free withdrawals.	Correct Incorrect

Question 6

If you have a "vesting schedule" associated with your 401(k) plan, you?

(A) Have a defined schedule as to when all of, or portions of, the employer matched portion of your 401(k) plan becomes yours.	Correct Incorrect
(B) Have a defined schedule as to when all of, or portions of your 401(k) plan becomes yours.	Correct Incorrect
(C) Have a defined schedule for the periodic reallocation of your 401(k) account balance into different types of investment options.	Correct Incorrect
(D) Have a defined schedule for "casual Fridays" written in your dress code.	Correct Incorrect

Question 7

401(k) plans are a type of retirement plan otherwise known as?

(A) A defined benefit plan.	Correct Incorrect
(B) A defined contribution plan.	Correct Incorrect
(C) A pension contribution plan.	Correct Incorrect
(D) An employment savings plan.	Correct Incorrect

Question 8

What age must you reach before you can draw from your 401(k) account without having to pay a penalty?

(A) 55	Correct Incorrect
(B) 59 1/2	Correct Incorrect
(C) 65	Correct Incorrect
(D) 66 1/2	Correct Incorrect

Question 9

When it is a good idea to reallocate your 401(k) investments?

(A) When your time horizon changes for retirement.	Correct Incorrect
(B) When your investment strategy changes from conservative to aggressive or aggressive to conservative.	Correct Incorrect
(C) When your allocation becomes out of balance due to growth or a decline in a specific investment type.	Correct Incorrect
(D) All of the above.	Correct Incorrect

Question 10

When you contribute to a 401(k) plan at work?

(A) The money is put into investments of your employer's choice.	Correct Incorrect
(B) The money is held by your employer as an investment in the company you work for.	Correct Incorrect
(C) You are offered a choice of investments to put your money by the third party administrator selected by your employer to manage the plan.	Correct Incorrect
(D) The money is invested in US Treasury notes which you can redeem with the Federal government at the time you retire.	Correct Incorrect

	Correct	Incorrect
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