8/8/18 homework

Dear Students,

Answer the questions and hand it in tomorrow. 

Level 1: Please answer questions 1-2
Level 2: Please answer questions 1-4
Level 3: Please answer questions 1-5

**All homework must be signed by a parent.**

Directions: Circle the correct answer.

1.    _________ are named after a section of the IRS code. These plans are often considered the simplest, most convenient and best for tax savings.

a.      Awesome savings plan                             b.    401 (k)

c.    I-9 documentation                                      d.    W-2

2.    What can a 401 (k) provide for you?

a.      Put away a lot of money for retirement        b.    Reduce your taxable income

c.    Defer taxes on the money you make           d.    All of the above

3.    How do you put money into a 401 (k) plan?

a.    Take your money to a bank employee and him put the money in a 401 (k)

b.    Go an IRS office and set up a 401 (k) account with them

c.    Set up a special account with your employer and use your income to contribute to a 401 (k) plan

d.    Go to the 401 (k) office and open an account                                       

4.    When are you allowed to withdraw money from your 401 (k) without a penalty?

a.      When you are 50.5 years old                  b.    When you retire           

c.    When you are 60.5 years old                   d.    Both A & B

5.    Which of the following choices are NOT found on a 401 (k) statement?

a.        Matching contributions                           b.    Investment options

c.      Age tax                                                      d.    Post-tax contributions