Retirement Accounts
This type of IRA are often tax-deductible in the year they are made. They grow tax-deferred until retirement.
Traditional IRA
Contributions are made with after-tax dollars but grow tax-free. Withdrawals used for qualified education expenses are also tax-free.
529 Plan
A type of savings account that allows you to set aside money on a pre-tax basis to pay for qualified medical expenses.
Health Savings Account (HSA)
What is a benefit of sharing finances?
Convenience
Financial Stability
Shared goals
Shared responsibilities
Transparency and Trust
Which type of account allows you to deposit and withdraw money for everyday transactions?
Checking Account
This type of IRA has contributions made after taxes. They grow tax-free and you do not get taxed in retirement.
Roth IRA
Similar to a 529 plan but with lower contribution limits and the ability to be used for K-12 expenses as well as post-secondary education.
COVERDELL EDUCATION SAVINGS ACCOUNT (ESA)
HSAs are only available to people enrolled in a _____ ________ ________ ________.
High Deductible Health Plan (HDHP)
What are some challenges to sharing finances?
Loss of financial independence
Differences in spending habits
Power imbalance
accountability from both people
This type of interest rate can fluctuate with market conditions.
Variable interest rate
This is an employer-sponsored retirement account. The employer deducts from you paycheck and will sometimes match a percentage of the contribution.
401(k)
Are the withdrawals from an HSA taxed, or tax-free?
tax-free
The amount of money that
you are responsible for paying before your insurance will kick in.
Deductible
Which factor is LEAST important when considering combining finances?
a) Trust
b) Communication
c) Zodiac sign
d) Transparency
C
An emergency fund is primarily designed to...
...cover unexpected financial challenges
Would a high income earner benefit more from a traditional IRA or a Roth IRA?
Traditional IRA
Which education plan has lower contribution limits?
A. 529 Plan
B. ESA
COVERDELL EDUCATION SAVINGS ACCOUNT (ESA)
The amount you pay your insurer to have an insurance policy.
Premium
Open communication helps build __________ between financial partners
trust
This provides retirement income, as well as disability income, to people who have paid into the system through their working years.
Social Security
Would a low income earner benefit more from a traditional IRA or a Roth IRA?
Roth IRA
Which education plan can be used for k-12 education?
A. 529 Plan
B. ESA
B. ESA
What are 2 benefits of an HSA?
1. Funds roll over
2. Cover Healthcare
3. Pre-tax contributions
4. Offer investment options
Different spending __________ and __________ can create challenges when combining finances.
habits, goals
The value of a missed opportunity when choosing one option over another is called _______________________ ___________.
opportunity cost