Answers to Retirement Quiz: The Basics

Click here to return to the quiz

  1. a. True. Anyone can make IRA contributions as long as they have earned income. A parent can contribute to an IRA for a child up to the annual amount of the child’s earned income or to the amount set by law each year ($5,500 in 2014; $6,500 if age 50 or over), whichever is less.

  1. g.  All of the above.  The newest type of retirement savings account is the MyRA. It is designed to help Americans begin to save for their retirement with after tax savings, but tax free growth similar to a Roth IRA. A MyRA can be started with an initial investment of as little as $25.

  1. a.  This term is used to describe the retirement benefits a federal employee retains the rights to when they leave federal service. 

  1. a.  True.  If you’re ready to leave federal service, you can leave your money in your TSP account if the vested balance is at least $200. You also can transfer other qualified money (such as a traditional IRA or another eligible employer plan) into your TSP account.   

  1. b. There is a three-year vesting requirement for the agency automatic contributions into your TSP, but there is a five-year vesting requirement for your basic government retirement benefit under both the Civil Service Retirement System and all versions of the Federal Employees Retirement System.

  1.  a. True.  It can be confusing, though, since the term “annuity” can be used to describe your CSRS or FERS retirement benefit as well as one of the withdrawal options for the TSP. 

  1. a.  True.  A pension requires contributions from the employee and/or the employer.  CSRS and FERS require both employee and employer contributions.

  1. a.  True.  The Office of Personnel Management refers to the CSRS and FERS benefit as both an annuity and a retirement benefit. 

  1. a.  True.  According to OPM, if you are a former federal employee who was covered by CSRS, you may be eligible for a deferred annuity at age 62. If you are a former federal employee who was covered under FERS, you may be eligible for a deferred annuity at age 62 or at the minimum retirement age, depending  upon how much service you had when you left federal service.

  1.  b.  False.  Social Security benefits provide a higher replacement of income for those earning lower wages and a lower replacement of income for those earning higher wages.

Click here to return to the quiz

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.