Page 79 - Book10E

If all of the above are true, then you can withdraw funds only for the following reasons:
• A primary home purchase
• Higher education tuition, room and board, and fees for the next twelve months for you, your spouse, your dependents or children (even if they are no longer dependent upon you)
• To prevent eviction from your home or foreclosure on your primary residence
• Severe financial hardship
• Tax-deductible medical expenses that are not reimbursed for you, your spouse or your dependents
Let’s Review
Learning which savings plan is best for you can be complicated. Match the descriptions below to the corresponding plan name to help you learn the difference between plans. At least one of these opportunities should be available to you.
1. _____ 401(k),
2. _____ Keogh plan 3. _____ Annuities
4. _____ a defined benefit plan
5. _____ 403(b) Tax-Deferred Annuitie 6. _____ Small Business Plans
a. A long-term savings plan instituted by an employer in which a deposit is deducted automatically from your paycheck and invested by a plan manager.
b. A pension plan that is managed by your employer. It guarantees you a specific amount of money when you retire, which is usually paid in monthly checks for as long as you live.
c. Plans designed for self-employed workers and their employees with an annual limit to contributions and also to the total amount of con- tribution.
Where Should I Save My Money? 69