Question

What should investors consider when planning for their retirement? Check all that apply.

the amount an employer will match for a 401(k)
the contributions an employer will make to an IRA
the ideal age to establish a particular retirement plan
the amount an investor is allowed to contribute annually
the tax laws and breaks related to different retirement plans
the amount that can be withdrawn early without getting taxed

Answer 1

Select the following (with brief reasons):

- the amount an employer will match for a 401(k) — Yes. Employer match is free money and affects how much you should contribute.
- the amount an investor is allowed to contribute annually — Yes. Contribution limits determine how much you can save tax-advantaged each year.
- the tax laws and breaks related to different retirement plans — Yes. Tax treatment (pre-tax vs. Roth, deductions, credits) drives which accounts make sense.
- the amount that can be withdrawn early without getting taxed — Yes. Early-withdrawal rules and penalties/exceptions affect liquidity and planning.

Do not (or not necessarily) check:

- the contributions an employer will make to an IRA — Usually no. Employers rarely contribute to traditional/Roth IRAs (exceptions exist like SEP-IRAs or SIMPLE IRAs for small employers/self-employed), so confirm plan type if applicable.
- the ideal age to establish a particular retirement plan — Not a single “ideal age.” Start as early as possible, but focus on rules that change with age (catch-up contributions, required minimum distributions) rather than an arbitrary ideal start age.