Quiz Ch 21 – Tax Optimization Strategies
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What should you maximize contributions to reduce your current tax bill?
What should you maximize contributions to reduce your current tax bill?
Which retirement plan does NOT permit tax-deductible contributions?
What is the tax treatment difference between contributions to a traditional retirement plan and contributions to a Roth retirement plan?
How are withdrawals after retirement treated for tax purposes in a traditional retirement plan versus a Roth retirement plan?
From which retirement plan are withdrawals during retirement not subject to taxes?
What investment option would be most effective if you’ve reached the maximum contributions to tax-sheltered retirement plans and want to reduce taxes further?
What is the term for a tax shelter that enables tax-exempt savings specifically for higher education expenses?
How should you distribute these assets between tax-sheltered and non-sheltered accounts given the ability to tax-shelter only half of your retirement savings and a desire for equal investments in bonds and stocks?
Taxes are imposed on which type of investment income?
Which statement regarding 401k plans is inaccurate?