Traditional
IRA
IRA
What is the tax benefit of contributing to a Traditional IRA?
Contributions may be tax-deductible in the year they are made.
What is the main difference between a Roth IRA and a Traditional IRA?
Roth IRA contributions are made with after-tax dollars, and withdrawals in retirement are tax-free.
What is the minimum age to start receiving Social Security benefits?
62.
What is an employer match in a 401(k)?
It’s when an employer contributes money to your 401(k) based on the amount you contribute.
What is a pension?
A pension is a retirement plan where an employer pays a fixed monthly income to employees after they retire.
At what age can you begin to withdraw funds from a Traditional IRA without penalty?
Age 59 ½.
Can you withdraw your Roth IRA contributions at any time without penalty?
Yes, you can withdraw your contributions (not earnings) anytime, tax- and penalty-free.
How does the amount you receive from Social Security change if you delay claiming benefits after your full retirement age?
Your monthly benefit increases for each year you delay, up to age 70
What type of 401(k) allows you to contribute with after-tax dollars and receive tax-free withdrawals in retirement?
Roth 401(k).
What type of pension guarantees a set payment amount throughout retirement?
A defined benefit pension.
What happens if you withdraw money from your Traditional IRA before age 59 ½?
You may have to pay a 10% early withdrawal penalty, in addition to income tax.
What is the income limit for contributing to a Roth IRA?
It varies depending on filing status, but for 2025, the income limit for single filers is $153,000, and for married couples, it’s $228,000.
What is the Social Security full retirement age for someone born in 1960 or later?
67 years old.
What is the contribution limit for a 401(k) in 2025?
$22,500 for individuals under 50; $30,000 for those 50 and older (catch-up contributions).
What happens to your pension if you leave a company before you’re vested?
You may lose your pension benefits, depending on the vesting schedule.
Can you contribute to a Traditional IRA if you’re covered by a workplace retirement plan?
Yes, but your contribution may be limited based on your income.
What is the maximum contribution limit for a Roth IRA in 2025?
$6,500 for those under age 50, $7,500 for those 50 or older.
How is your Social Security benefit amount calculated?
It’s based on your 35 highest-earning years.
What happens to your 401(k) if you leave your employer?
You can either leave it with the former employer, roll it over into a new employer’s 401(k), or roll it over into an IRA.
What’s the main difference between a pension and a 401(k)?
A pension provides a guaranteed monthly income, while a 401(k) depends on how much you contribute and the performance of your investments.
What is the required minimum distribution (RMD) age for a Traditional IRA?
Age 73 (as of 2025).
If you have a Roth IRA, how long do you need to wait to take tax-free withdrawals on earnings?
At least five years and you must be 59 ½ or older.
What is the “windfall elimination provision” in Social Security?
It reduces Social Security benefits for people who also have pensions from work not covered by Social Security.
What is the "401(k) loan" option?
It allows you to borrow money from your 401(k) and repay it with interest, usually within 5 years.
Can a pension plan be "frozen"?
Yes, some companies freeze pensions, meaning no new benefits are earned, but employees still receive their earned benefits.