Intro to Retirement
Individual Retirement Accounts
Let’s say I’m working at a company and have a 401(k). What happens if I leave that company for a new one that doesn’t offer a 401(k)? Can I continue to contribute to my old plan?
Once you’ve left that company, you’ll no longer be able to contribute to its 401(k) plan. The good news is that you still have some great options for saving for retirement.
What is an IRA?
A tax-advantaged savings account for individuals
A statistic used to evaluate baseball pitchers
A government employee retirement plan
An employer-sponsored retirement account
What is the maximum amount you can contribute to an IRA each year?
There is no limit on IRA contributions
$7,500
$2,000
$4,000
What are the features of a Roth IRA?
Neither contributions nor withdrawals are tax-advantaged
Withdrawals are tax-advantaged, but contributions are not
Contributions are tax-advantaged, but withdrawals are not
Both contributions and withdrawals are tax-advantaged
What happens with the money you contribute to an individual retirement account?
The Human Resources department at your job manages your investments
The firm where you have the account manages your investments
It’s up to you to manage your investments
The government manages your investments