Brokerage Accounts
How many brokerage accounts can an individual have?
A) 1
B) 5
C) 10
D) Unlimited
D) What is unlimited?
The Profit Sharing Plan of Quest Diagnostics is this type of retirement account.
A) What is a 403(b)?
B) What is a traditional 401(k)?
C) What is a Roth 401(k)?
D) What is a 457(b)?
B) What is a traditional 401(k)? - The 401(k) Plan is administered by Fidelity and Quest matches contributions dollar-for-dollar on up to 5%.
The employee rather than the employer owns this account.
A) What is a HRA ?
B) What is a FSA?
C) What is a HSA?
C) What is a HSA?
*with an HRA and FSA, the employer owns the account. If the employee leaves the company then any remaining funds in these accounts are forfeited.
Who runs 529 plans?
A) 529 plans are run by the government and their rules are the same
B) 529 plans are run by the states, and their rules differ
B) 529 plans are run by the states, and their rules differ
This rate of economic growth is most directly influenced when the Federal Reserve System sets and adjusts the target for the federal funds rate.
A) What is inflation?
B) What is unemployment?
C) What is GDP (Gross Domestic Product)?
D) What is the consumer price index?
A) What is inflation?
Inflation and interest rates are often linked and usually have an inverse relationship. In general, when interest rates are low, the economy grows, and inflation increases. Conversely, when interest rates are high, the economy slows and inflation decreases
The amount of money that an individual can contribute to a brokerage account each year.
A) What is $20,000?
B) What is $500,000?
C) What is $1,000,000?
D) What is unlimited?
D) What is unlimited?
For workers younger than the age of 50, this is the maximum amount that they can contribute to a 401(k) in 2022.
A) $19,500
B) $21,000
C) $20,500
D) $19,000
C) What is $20,500
If you're age 50 and older then you can add an extra $6,500 per year in "catch-up" contributions.
This is how earnings from investments in an HSA are taxed.
A) As ordinary income
B) As capital gains
C) They are not taxed
C) What is they are not taxed?
When are earnings in a 529 plan exempt from federal and state income taxes?
A) Provided the money is used for property for children
B) Provided the money is used for any educational expenses
C) Provided the money is used for qualified education expenses
C) When the money is used for qualified education expenses
A quick and useful formula that is popularly used to estimate the number of years required for an investment to double in value at a given annual rate of return.
A) What is the MonkeyDex?
B) What is the Rule of 72?
C) What is the Weighted Average formula?
D) What is the Double Matrix?
B) What is the Rule of 72?
Years to Double equals 72 divided by the Interest Rate
Who sets up your brokerage account?
A) Yourself
B) Your employer
C) Your state
A) What is yourself?
If you take money out from a 401(k) before this age you will owe regular income taxes on the amount and you will have to pay a 10% early withdrawal penalty.
A) What is 59 ½ years old?
B) What is 65 years old?
C) What is 60 years old?
D) What is 50 years old?
A) What is 59 1/2 years old?
This account can offer the option to invest funds:
A) What is a HRA ?
B) What is a FSA?
C) What is an HSA?
C) What is an HSA?
Withdrawals from a 529 plan can be used for.
A) College only
B) Post degree only
C) College and K-12
C) What is College and K-12?
The selling of securities at a capital loss in order to lower or eliminate the capital gain realized by other investments, for income tax purposes.
A) What is Capital Gains Tax?
B) What is Capital Loss Carryover?
C) What is Tax-Loss Harvesting or Tax Selling?
D) What are Unrealized Gains/Losses?
C) What is Tax-Loss Harvesting or Tax Selling?
Something to be wary of, the IRS prohibits wash sales. A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar. The wash-sale rule prevents taxpayers from deducting this capital loss on the sale against the capital gain
True or False: Brokerage accounts are tax-advantaged accounts.
What is False?
The latest date that you can make a contribution to an IRA (both traditional and Roth) for a particular year.
A) What is "Tax Day" or April 15th of the following year
B) End of the Calendar Year
C) March 31st of the following year
D) January 31st of the following year
A) What is "Tax Day" or April 15th, 2022
Individuals can contribute a combined total of $6,000 between their IRA(s), $7,000 if you are 50 or older. Traditional IRAs are 'pre-taxed' meaning they have tax deductible contributions but you must pay taxes on withdrawals. Roth IRA contributions are post-tax, meaning that you will pay taxes on them now, but can withdraw earnings tax-free in retirement.
You must have this type of health plan to open an HSA.
A) What is a Health Reimbursement Arrangement
B) What is a High Deductible Health Plan?
C) What is a Point of Service Plan?
B) What is a High Deductible Health Plan? --- Basic Plan
What are the two basic types of 529 plans?
A) Saving plans and checking plans
B) Savings plans and paid tuition plans
C) Savings plans and pre-paid tuition plans
C) What are savings plans and pre-paid tuition plans?
This index acts as a benchmark of the performance of the U.S. stock market overall. Dating back to its inception in 1957 in its current form, the index has returned a historic annualized average return of about 10.5% through 2021.
A) What is the "Buffett Buffet"?
B) What is the Russell 2000?
C) What is the Dow Jones Industrial Average?
D) What is the S&P 500?
D) What is the S&P 500?
The primary uses of a brokerage account.
A) What is long-term growth and retirement savings?
B) What is stock trading, options trading, and saving for life events?
C) What is saving for educational expenses and college?
D) What is an alternative to a checking account?
B) What is stocks/options trading, saving for life events, and additional long-term savings after maxing out retirement accounts?
This is an employer-sponsored retirement savings account that is funded using after-tax dollars. Meaning the income tax is paid immediately but withdrawals are tax-free upon retirement.
A) What is a Roth IRA?
B) What is a traditional IRA?
C) What is a traditional 401(k)?
D) What is a Roth 401(k)?
D) What is a Roth 401(k)?
A type of tax-exempt account that has the same contribution limit as a traditional 401(k)
If an account holder does not use up all of the money in this type of account by the end of the year, they can roll over up to $570.
A) What is a HSA?
B) What is a HRA?
C) What is a FSA?
C) What is a FSA?
*For an HRA, the amount you don't use will carry forward as long as you remain enrolled in the Consumer Choice Plan and are employed at Quest. For the HSA, your funds will carry over and stay with you.
Can you change the beneficiary on your 529?
A) Never
B) Anytime you want
C) Once a year
B) Anytime you want
There are currently this many federal tax brackets in the U.S.
A) What is 7?
B) What is 3?
C) What is 5?
D) What is 8?
A) What is 7?
They are 10%, 12%, 22%, 24%, 32%, 35%, and 37%