Question

1.         Individuals that are self-employed may participate in Financial Institution-administered retirement accounts that offering tax-deferred benefits. These are _________________.

A.     401(k)
B.      403(b)
C.      defined benefit plan
D.     Keogh account
E.      traditional IRA

2.         A(n) ______________ is an employer-offered supplemental retirement plan in which the employee chooses how funds are invested.

A.     401k plan
B.      defined benefit plan
C.      Roth IRA
D.     traditional IRA
E.      under-funded plan

3.         For an employee to retain her company’s pension benefits rights should she leave the firm, she must be _______________ .

A.     a defined contributor
B.      guaranteed
C.      insured
D.     invested
E.      vested

4.         If a pension plan sponsor promises an employee a specific schedule of benefits upon retirement, the plan is a(n) _______________.

A.     401k plan
B.      defined contribution plan
C.      defined benefit plan
D.     insured pension plan
E.      under-funded plan

5.         Key Federal legislation passed in 1974 concerning the administration of pension plans is the ____________ .

A.     ERISA
B.      Financial Services Modernization Act
C.      Keogh Act
D.     PBGC Act
E.      Roth Act

Answer 1

1.Individuals that are self-employed may participate in Financial Institution-administered retirement accounts that offering tax-deferred benefits. These are ________A.     401(k)
C.      defined benefit plan and
D.     Keogh account

2. A(n) ______________ is an employer-offered supplemental retirement plan in which the employee chooses how funds are invested.

B.      defined benefit plan

3. For an employee to retain her company’s pension benefits rights should she leave the firm, she must be _______________ .

D.Vested

4.  If a pension plan sponsor promises an employee a specific schedule of benefits upon retirement, the plan is a(n) _______________.

C.      defined benefit plan

5.         Key Federal legislation passed in 1974 concerning the administration of pension plans is the ____________ .

A.     ERISA