IRA Quiz

What is the difference between a traditional IRA and a Roth IRA?  How long do you have to make 2013 contributions to your IRA?  How much can you contribute to your IRA?  Take this quiz to find out these answers and more about the basics of IRAs!

 

1) What does IRA stand for?

a. Initial Retirement Adjustment
b. Individual Retirement Account
c. Internal Revenue Association

2) A traditional IRA is a retirement account which...

a. Allows contributions from before-taxed income, so withdrawals in retirement are taxed.
b. Allows contributions from after-taxed income, so withdrawals in retirement are not taxed.
c. Is not taxed at all.

3) A Roth IRA is a retirement account which...

a. Allows contributions from before-taxed income, so withdrawals in retirement are taxed.
b. Allows contributions from after-taxed income, so withdrawals in retirement are not taxed.
c. Is not taxed at all.

4) What is the deadline for making 2013 annual contributions to either a traditional or Roth IRA?

a. December 31, 2013
b. April 15, 2014
c. August 1, 2014

5) What is the maximum annual amount the account holder 49 years and younger can contribute to either a traditional or Roth IRA for 2013?

a. $2,500.00
b. $5,500.00
c. Any amount

6) What is the maximum annual amount the account holder 50 years and older old can contribute to either a traditional or Roth IRA for 2013?

a. $6,500.00
b. $10,000.00
c. Any amount

7) What is the minimum annual amount the account holder (any age) can contribute to either a traditional or Roth IRA?

a. Any amount, up to the maximum
b. $1,000.00
c. $5,000.00

8) At what age can the account holder start making contributions to either a traditional or Roth IRA?

a. Any age, as long as he/she is earning income
b. 18 years old
c. 21 years old

9) At what age must the account holder stop making contributions to a traditional IRA?

a. 50 years old
b. 70 1/2 years old
c. There is no age limit

10) At what age must the account holder stop making contributions to a Roth IRA?

a. 50 years old
b. 70 1/2 years old
c. There is no age limit

11) What does RMD stand for?

a. Rollover Money Discount
b. Roth Maximum Disbursement
c. Required Minimum Distribution

12) At what age is the original account holder required to take an RMD from a traditional IRA?

a. 50 years old
b. 70 1/2 years old
c. There is no age requirement

13) At what age is the original account holder required to take an RMD from a Roth IRA?

a. 50 years old
b. 70 1/2 years old
c. There is no age requirement

14) What is the deadline for taking an initial RMD for 2013?

a. December 31, 2013
b. April 1, 2014
c. August 15, 2014


Answers:
1) b 2) a 3) b 4) b 5) b 6) a 7) a 8) a 9) b 10) c 11) c 12) b 13) c 14) b

Please visit the Official Website of the IRS for more information.

Credit Card Mistakes to Avoid

Whether due to confusion or carelessness, credit card mistakes are all too common. The fallout can be costly, no matter what the cause. Even a single slip-up can result in higher interest rates, lower credit limits, unwanted fees or dings to a credit score.

New rules put in place by the Credit Card Act of 2009 and the Dodd-Frank Act of 2010 help, as does the formation of the Consumer Financial Protection Bureau, which monitors the credit card industry. But ultimately it’s up to you to use credit wisely.

Take a look at this slideshow on Kiplinger.com to see a detailed explanation on 11 of the most common credit card mistakes and to learn how to avoid making them.  We have also included a simple list below.

1. Paying bills late
2. Bundling balance transfers
3. Making minimum payments
4. Using up all available credit
5. Ignoring monthly statements
6. Racking up foreign transaction fees
7. Taking cash advances
8. Spending to earn rewards
9. Paying excessive annual fees
10. Chasing teaser rates
11. Neglecting credit scores