1. You're in a pension plan that requires the company to fund the PENSION BENEFITS andtherefore bear the pension costs. This pension plan is considered a _______ plan.
A. noncontributory
B. contributory
B. vested rights
D. defined contributory
2. You're a participant in a pension plan that offers a specific payment formula of benefitswhen you retire. What kind of plan is this?
A. DEFINED CONTRIBUTION plan
B. Vested rights plan
C. Noncontributory plan
D. Defined benefit plan
3. Your company wants to deduct its contributions to the pension plan as a tax deductibleexpense and has applied to the Internal Revenue Service to treat the plan as a _______plan.
A. IRS approved pension
B. qualified pension
C. ERISA pension
D. funded pension
4. You want to start planning for retirement and you learned about the mistakes that people often make. Which of the following is a RETIREMENT PLANNING mistake?
A. Saving too much
B. Starting to invest too late
C. Investing in an IRA
D. INVESTING for the long-term
5. A key factor in setting your retirement goals in relation to the amount of money you musthave to retire is
A. where you want to live.
B. your hobbies.
C. your planned age at retirement.
D. the types of retirement plan you have.