Retirement Income Sources
The “three-legged stool” of retirement income consists of social security, personal savings, and ______.
What are employer plans?
This type of retirement account does not have a required minimum distribution (RMD).
What is a Roth IRA?
For those born in 1960 or later, this is the age to receive full Social Security benefits.
What is 67?
This federal act provides protection for plan participants and sets requirements for age and service.
What is ERISA (Employee Retirement Income Security Act)?
The point at which you work only because you enjoy it.
What is financial independence?
This type of IRA is funded with after-tax dollars and allows tax-free withdrawals in retirement.
What is a Roth IRA?
The age at which most participants must begin taking Required Minimum Distributions (RMDs).
What is 73?
Delaying Social Security benefits past full retirement age results in this effect on your monthly payments.
What is an increase in benefits?
This is the amount an employer contributes to an employee’s retirement plan based on the employee’s own contributions, often up to a set percentage.
What is an employer match?
This strategy involves selling a security that has lost value to offset capital gains and reduce taxes.
What is tax loss harvesting?
Starting retirement savings early benefits from this financial concept, which increases growth over time.
What is compound interest?
Cost of pulling money out of your Roth IRA before 59 ½ years old and without a permissible exception.
What is the 10% penalty?
Up to this percentage of Social Security benefits may be taxable for higher-income individuals.
What is 85%?
Tax-advantaged personal savings account for individuals with a high deductible plan to pay for qualified medical expenses.
What is a Health Savings Account (HSA)?
A common rule of thumb for an annually safe withdrawal rate from retirement savings.
What is 3 to 4 percent?
This financial product provides a stream of income in exchange for a lump sum payment.
What is an annuity?
In 2024, contribution limited to $7,000 plus an additional $1,000 for employees age 50 or older
What is Roth IRA maximum elective contribution?
Early retirement age, where reduced social security benefits may start.
What is 62 years old?
This is a type of defined benefit plan where an employer contributes a % of salary into an employee’s account, providing a modest earnings rate
What is a Cash Balance Plan?
A financial tool for homeowners to access equity without making monthly payments, often used as a last resort in retirement.
What is a Reverse Mortgage?
This rule of thumb suggests retirees will need about _____ times of their annual expenses each year.
What is 25x?
The amount of time, in days, a taxpayer has to "roll" a distribution into another qualified account to avoid taxes and penalties
What is 60 days?
After this age, delaying Social Security benefits no longer increases your monthly payment.
What is age 70?
The point at which your contributions are not at risk of forfeiture upon termination of employment.
What is vesting?
This acronym stands for a strategy focused on achieving financial independence and retiring early.
What is FIRE (Financial Independence, Retire Early)?