Open the idea of an IRA: account first, investments inside: test your skills
An individual retirement account works alongside — or instead of — a workplace plan, with traditional and Roth versions. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Compare traditional and Roth IRAs
- Know the income and limit rules exist
- Invest the money after contributing
- Practice
1. Who can generally contribute to an IRA?
- Practice
2. Qualified Roth IRA withdrawals in retirement are…
- Practice
3. After contributing to an IRA you should…
- Key idea
4. Which statement best explains "An IRA is an account, not an investment"?
- Key idea
5. Which statement best explains "Tax now or tax later"?
- Key idea
6. Which statement best explains "Limits change yearly"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
You contribute $250 every two weeks (26 times a year). How much is that per year?
Show the answer
$6,500
$250 × 26 = $6,500. Check it is within the current IRS limit.
If you have an IRA, log in and check whether any of it is sitting in cash.
More tests in this bootcamp
- Understand your 401(k) and employer match
- Open the idea of an IRA: account first, investments inside
- Compare Roth and Traditional IRAs through the tax timing
- Understand the backdoor Roth IRA and its tax pitfalls
- Understand an HSA’s tax benefits and receipt records
- Explore how claiming age changes Social Security benefits
- Use the 4% rule as a starting point, with its limits
- Plan for required minimum distributions
- Check the costs and commitments of early retirement withdrawals
- Final exam: Retirement accounts