CBP Retirement and Pension Plan Management

Question 1

What is the primary benefit of a 401(k) plan for employees?

Accepted Answer

Tax-deferred growth

Answer

Immediate access to funds

Answer

Guaranteed monthly payouts

Answer

Government matching contributions

Question 2

Which law protects employees' retirement benefits in private-sector pension plans?

Accepted Answer

ERISA

Answer

FMLA

Answer

COBRA

Answer

ACA

Question 3

Which type of retirement plan provides employees with a fixed monthly payment upon retirement?

Accepted Answer

Defined benefit plan

Answer

Defined contribution plan

Answer

Roth IRA

Answer

Stock option plan

Question 4

What is the purpose of a Roth IRA in retirement planning?

Accepted Answer

Tax-free withdrawals in retirement

Answer

Employer contributions required

Answer

Pre-tax contributions

Answer

Guaranteed interest rate

Question 5

What is a key difference between a 401(k) and a 403(b) retirement plan?

Accepted Answer

403(b) plans are designed for nonprofit employees

Answer

403(b) plans are only for government workers

Answer

401(k) plans are only for small businesses

Answer

401(k) plans have higher contribution limits

Question 6

At what age can individuals start taking penalty-free withdrawals from most retirement accounts?

Accepted Answer

59½

Answer

55

Answer

62

Answer

65