Financial assets such as a pension, 401(k), and other types of investment savings can provide tax benefits. Even homeowners can save on mortgage interest charges and property taxes.
Watch the video to learn more about Tax Benefits from Financial Assets, then test your knowledge at the end of the lesson.
What is a common factor shared between pensions, 401(k) plans, and 403(b) plans?
A. Contributions are after-tax
B. Contributions have no limit
C. Distributions are tax-free
D. Distributions are taxed
Individual Retirement Accounts, or IRAs, are opened by the employer and managed by both the employer and the individual.
A. True
B. False
All of the following are types of accounts for small business owners and self-employed individuals except…
A. Coverdell ESA
B. Keogh Plan
C. Simplified Employee Pension IRA
D. SIMPLE IRA