03/27/20 - Early Withdrawal Tax Penalty
Quiz by Christopher Jones
High School
Financial Mathematics
Texas Essential Knowledge and Skills (TEKS) - Electives
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3 questions
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- Q1What is the typical tax penalty percentage on early withdrawal from a retirement account?10%1%25%50%300s130.180.F.11.C
- Q2What is one way you can avoid the tax penalty on a Roth IRA or Roth 401(k) even if you withdraw money early?You withdraw the full amount and spend it on student loans.You withdraw an amount to cover routine medical expenses.You withdraw an amount to cover healthcare premiums from a policy granted by your employer.You withdraw only up to the amount you've contributed.300s130.180.F.11.C
- Q3Kyle has a Roth 401(k). He makes $30,000 annually and contributes 10% of his annual earnings to his retirement. His employer matches half of his contribution. After three years, the balance of his 401(k) is $19,872.36. Kyle has a sudden need for cash and decides to pull out $15,000. How much is his tax penalty for withdrawing those funds?$1,500$600$150There is no penalty for withdrawal.300s130.180.F.11.C