Quiz: Setting Up a 401(k) Plan
by Staff
Although it's nice to think about the money coming in from your paycheck, it's also a good idea to consider where some of it can go. If your company offers a plan, and you've thought about saving for retirement, see how much you know about 401(k) accounts with this quiz.

At what age can you begin withdrawing money from a 401(k) account?

  • 55 years old
  • 59 years old
  • 59 and a half years old

Which of the following is NOT an advantage of a 401(k) plan?

  • Your contributions are deducted from your paycheck before taxes.
  • Withdrawals made before you reach six months past age 59 are taxed as income.
  • 401(k) plans are protected from creditors.

What is the federal 401(k) contribution limit per year if you're under age 50?

  • $15,000 per year
  • $17,500 per year
  • $19,000 per year

How many employees participate in a 401(k) plan in the U.S.?

  • 38 million
  • 65 million
  • 88 million

What percentage of your salary should you put into a 401(k) plan throughout your career?

  • 6 percent
  • 10-15 percent
  • 18 percent

On average, how much will companies match on a 401(k)

  • 20 cents for every dollar
  • 35 cents for every dollar
  • 50 cents for every dollar

What's a good way to determine how much of your portfolio should include stock investment?

  • subtract your age from 100
  • subtract your age from 110
  • pick a random number

What happens to your 401(k) if you switch jobs?

  • Your former employer cuts you a check for what you've saved so far.
  • There's a six month period where you can't contribute.
  • It disappears completely.

Which type of investment is considered riskiest?

  • corportate bonds
  • treasury bills
  • stocks

What does IRA stand for?

  • Incremental Rate Adjustment
  • Individual Retirement Account
  • Independent Retirement Account