Introduction Comment by Exploring Series: This is listed as a Heading 2, but it should be Heading 1. Please change this heading to a Heading 1 style. It is never too early to save for your retirement. For a start, you can estimate the amount that you need to have before you can retire comfortably using financial calculators found on sites such as CNN Money, Kiplinger, Motley Fool, and TIAA-CREF financial services. The good part is, there are many different types of retirement plans that you can participate, individually or with your employers. To help you save for retirement, there are many government-regulated and government-approved retirement accounts that you can contribute a certain amount to annually. Why should you enroll in a retirement plan NOWnow? Did you know that your retirement can last for 30 years or more? A common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably. Unfortunately, the average benefit amount paid monthly by the Social Security Administration is only $1,177. Below are many advantages why you should start saving NOWnow: · Tax on employee and employer contributions is deferred until distributed. · Investment gains in the plan are not taxed until distributed. · Retirement assets can be carried from one employer to another. · Contributions can be made easily through payroll deduction. · Saver’s Credit is available. · Flexible plan options are available. · Better financial security at retirement. Future Retirement Savings Value - Assuming 6% annual return Comment by Exploring Series: You need to insert a caption for this table and the next table. Monthly Savings 5 years 15 years 20 years $50 $3,506 $14,614   $23,218  $200 $14,024 $58,456  $92,870  $500 $35,059 $146,136 $232,176 Source: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Benefits-of-Saving-Now A contribution is defined as the amount that an employee and an employer can put into a retirement plan. There are, however, varying limits on how much we (including both employers and employees) can contribute to any of the retirement plan. Each plan has its own rules and criteria, and must specifically state that contributions or benefits cannot exceed certain limits. Employees can participate in contributions via salary reduction. Employers can match employees’ contributions or contribute outright a certain amount into the employees’ retirement account. Traditional Individual Retirement Arrangements (IRAs) Comment by Exploring Series: Please change all headings formatted with Heading 3 to Heading 2 style. There are two major kinds of IRAs – traditional and Roth. A traditional IRA is a way to save for retirement that gives you tax advantages. It allows you to make tax-deferred investments to provide financial security when you retire. Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement pla ...

1. Introduction Comment by Exploring Series: This is listed as a
Heading 2, but it should be Heading 1. Please change this
heading to a Heading 1 style.
It is never too early to save for your retirement. For a start, you
can estimate the amount that you need to have before you can
retire comfortably using financial calculators found on sites
such as CNN Money, Kiplinger, Motley Fool, and TIAA-CREF
financial services. The good part is, there are many different
types of retirement plans that you can participate, individually
or with your employers. To help you save for retirement, there
are many government-regulated and government-approved
retirement accounts that you can contribute a certain amount to
annually. Why should you enroll in a retirement plan NOWnow?
Did you know that your retirement can last for 30 years or
more? A common rule to follow is that a retiree will need up to
80% of his/her annual income today to retire comfortably.
Unfortunately, the average benefit amount paid monthly by the
Social Security Administration is only $1,177.
Below are many advantages why you should start saving
NOWnow:
· Tax on employee and employer contributions is deferred until
distributed.
· Investment gains in the plan are not taxed until distributed.
· Retirement assets can be carried from one employer to
another.
· Contributions can be made easily through payroll deduction.
· Saver’s Credit is available.
· Flexible plan options are available.
· Better financial security at retirement.
Future Retirement Savings Value - Assuming 6% annual return
Comment by Exploring Series: You need to insert a
caption for this table and the next table.

2. Monthly Savings
5 years
15 years
20 years
$50
$3,506
$14,614
$23,218
$200
$14,024
$58,456
$92,870
$500
$35,059
$146,136
$232,176
Source: http://www.irs.gov/Retirement-Plans/Plan-Participant,-
Employee/Retirement-Topics-Benefits-of-Saving-Now
A contribution is defined as the amount that an employee and an
employer can put into a retirement plan. There are, however,
varying limits on how much we (including both employers and
employees) can contribute to any of the retirement plan. Each
plan has its own rules and criteria, and must specifically state
that contributions or benefits cannot exceed certain limits.
Employees can participate in contributions via salary reduction.
Employers can match employees’ contributions or contribute
outright a certain amount into the employees’ retirement
account.
Traditional Individual Retirement Arrangements (IRAs)
Comment by Exploring Series: Please change all headings
formatted with Heading 3 to Heading 2 style.
There are two major kinds of IRAs – traditional and Roth. A
traditional IRA is a way to save for retirement that gives you
tax advantages. It allows you to make tax-deferred investments

3. to provide financial security when you retire. Your traditional
IRA contributions may be tax-deductible. The deduction may be
limited if you or your spouse is covered by a retirement plan at
work and your income exceeds certain levels. You can
contribute to a maximum of $5,500 ($6,500 if you are age 50 or
older) every year to a IRA.
Roth Individual Retirement Arrangements (Roth IRAs)
A Roth IRA is similar to a Traditional IRA in many ways, and is
also subjected to the same rules that apply to a traditional IRA.
But the major disadvantage of a Roth IRA is that you cannot
deduct your contributions to a Roth IRA on your tax return. On
the other hand, your distribution, which includes both your
contribution and earnings, are not subject to taxes when you
withdraw your investments later.
Some of the rules and regulations governing a Roth IRA include
the following:
· If you satisfy the requirements, qualified distributions are tax-
free.
· You can make contributions to your Roth IRA after you reach
age 70 ½.
· You can leave amounts in your Roth IRA as long as you live.
· The account or annuity must be designated as a Roth IRA
when it is set up.
· The same combined contribution limit applies to all of your
Roth and traditional IRAs.
· Limits on Roth IRA contributions is based on modified AGI.
· Your Roth IRA contribution might be limited based on your
filing status and income.
Comparisons between a Traditional and a Roth IRA
You can save your money for retirement in a traditional IRA
and/or a Roth IRA. Which method is a better form of investment
depends on various criteria. The table below highlights some of

4. the similarities and differences between these two options.
Features Comment by Exploring Series: Make sure that the
whole table is on the same page.
Traditional IRA
Roth IRA
Who can contribute?
You can contribute if you (or your spouse if filing jointly) have
taxable compensation but not after you are age 70½ or older.
You can contribute at any age if you (or your spouse if filing
jointly) have taxable compensation and your modified adjusted
gross income is below certain amounts.
Are my contributions deductible?
You can deduct your contributions if you qualify.
Your contributions aren’t deductible.
How much can I contribute?
The most you can contribute to all of your traditional and Roth
IRAs is the smaller of:
· $5,500, or $6,500 if you’re age 50 or older by the end of the
year; or
· your taxable compensation for the year.
What is the deadline to make contributions?
Your tax return filing deadline (not including extensions). For
example, you have until April 15, to make your last year’s
contribution.
When can I withdraw money?
You can withdraw money anytime.
Do I have to take required minimum distributions?
You must start taking distributions by April 1 following the
year in which you turn age 70½ and by December 31 of later
years.
Not required if you are the original owner.
Are my withdrawals and distributions taxable?
Any deductible contributions and earnings you withdraw or that
are distributed from your traditional IRA are taxable. Also, if
you are under age 59 ½ you may have to pay an additional 10%

5. tax for early withdrawals unless you qualify for an exception.
None if it’s a qualified distribution (or a withdrawal that is a
qualified distribution). Otherwise, part of the distribution or
withdrawal may be taxable. If you are under age 59 ½, you may
also have to pay an additional 10% tax for early withdrawals
unless you qualify for an exception.
Source: HYPERLINK "http://www.irs.gov/Retirement-
Plans/Traditional-and-Roth-IRAs"
http://www.irs.gov/Retirement-Plans/Traditional-and-Roth-IRAs
401(k) Plans
A 401(k) is a qualified profit-sharing plan that allows
employees to contribute a portion of their wages to their
individual retirement accounts at their workplace. This qualified
plan can be a profit-sharing, stock bonus, pre-ERISA money
purchase pension, or a rural cooperative plan. With a 401(k)
plan, employees can choose to defer some of their salary to a
retirement account. In other words, instead of receiving that
amount in their paycheck, the employee chooses to defer, or
delay, getting that money by putting their deferred money into a
401(k) plan sponsored by their employer. The deferred wages
(elective deferrals) are not subject to federal income tax
withholding at the time of deferral, and they are not reflected as
taxable income on the employee’s individual income tax return.
However, this deferred money and its earnings will be taxed
when it is distributed later on.
You can make a 401(k) plan as simple or as complex as you
want to. A 401(k) plan that is pre-approved by the IRS might be
just the thing to cut down on administrative headaches and
expenses.
Advantages and disadvantages of a 401(k) plan:
· Greater flexibility in contributions.
· Employees may contribute more to this plan than under IRA

6. plans.
· Good plan if cash flow is an issue.
· Optional participant loans and hardship withdrawals add
flexibility for employees.
· Administrative costs may be higher than under more basic
arrangements.
· Need to test that benefits do not discriminate in favor of the
highly compensated employees. This testing can be
complicated.
· Additional withdrawal and loan flexibility adds administrative
burden for the employer.
403(b) Plans
A 403(b) is a tax-sheltered annuity (TSA) plan. It is a
retirement plan offered by public schools and certain 501(c)(3)
tax-exempt organizations. This plan is quite similar to a 401(k)
plan which is maintained by a for-profit entity. Just as with a
401(k) plan, a 403(b) plan allows employees to defer some of
their salary into individual accounts. The deferred salary is
generally not subject to federal or state income tax until it is
distributed. However, a 403(b) plan may also offer designated
Roth accounts. Salary contributed to a Roth account is taxed
currently, but is tax-free (including earnings) when distributed.
Employees save for retirement by contributing to individual
accounts, and employers can also contribute to the employees'
accounts.
Advantages and disadvantages of a 403(b) plan include the
following:
· Flexibility in contributions.
· Investment options are limited to those chosen by the
employer.
· may have high administrative costs.
· optional loans and hardship distributions add flexibility for
employees.

7. Who Can Participate in a 403(b) Plan? Comment by Exploring
Series: Please change this heading formatted as Heading 4 to a
Heading 3 style.
The following employees are eligible to participate in a 403(b)
plan:
· Employees of tax-exempt organizations established under
§501(c)(3) of the Code.
· Employees of public school systems who are involved in the
day-to-day operations of a school.
· Employees of cooperative hospital service organizations.
· Civilian faculty and staff of the Uniformed Services
University of the Health Sciences (USUHS).
· Employees of public school systems organized by Indian tribal
governments.
· Certain ministers if they are:
· Ministers employed by §501(c)(3) organizations.
· Self-employed ministers. A self-employed minister is treated
as employed by a tax-exempt organization that is a qualified
employer.
· Ministers (chaplains) who meet both of the following
requirements.
· They are employed by organizations that are not §501(c)(3)
organizations.
· They function as ministers in their day-to-day professional
responsibilities with their employers.
Conclusion
This paper summarizes the various types of retirement plans
that employees can participate to save for their own retirement.
There are many pros and cons for each of the plans, and you
need to find the one plan that works best for you.
Grader - Instructions Word 2016
ProjectEX16_WD_CH04_GRADER_CAP_HW - Retirement
Plan 1.10

8. Project Description:
You are enrolled in a personal finance course at your local
university. One of the assignments is to write a group paper
with another student about the different types of retirement
plans. You and your partner conducted research on the topic and
wrote a final draft of the report. In this project, you will format
the paper to enhance readability. You will use track changes,
accepting and rejecting them as necessary, credit sources used
in the preparation of the report, address your partner’s
comments, include a table of contents and an index.
Steps to Perform:
Step
Instructions
Points Possible
1
Download and open the file named
exploring_w04_grader_h1_Retirement.docx, and save it as
exploring_w04_grader_h1_Retirement_LastFirst.docx.
0
2
Ensure that the markup view is All Markup. Review the
comments. On the second page, reject the replacement of the
two words NOW to lowercase.
6
3
Accept all other tracked changes in the document and stop
tracking. Keep all comments.
4
4
Change all headings to the correct heading styles as per the
comments left by your partner.
10
5
Reply to the first comment by typing I have made the style
replacement. (include the period.)
4

9. 6
Select the table on page 2, and insert the caption text to read
Table 1: The Future Value of Money (no period). Make sure the
caption displays above the selected item. Center the caption.
4
7
Assign the caption Table 2: Comparisons between a Traditional
and a Roth IRA for the next table, as instructed in the
comments. Center the caption.
4
8
Select the APA Sixth Edition style. Click before the period at
the end of the first sentence of the 403(b) Plans section. The
sentence ends in (TSA) plan. Insert the following Web site
citation:
Name of Web Page: Choosing a Retirement Plan: 403(b) Tax-
Sheltered Annuity Plan
Name of Web Site: IRS
Year: 2014
Month: October
Day: 08
URL: http://www.irs.gov/Retirement-Plans/Choosing-a-
Retirement-Plan:-403(b)-Tax-Sheltered-Annuity-Plan
5
9
Click before the period ending the first sentence of the 401(K)
section. The sentence ends with at their workplace. Insert the
following Web site citation:
Name of Web Page: 401(k) Plan
Name of Web Site: IRS
Year: 2014
Month: October
Day: 14
URL: http://www.irs.gov/Retirement-Plans/401(k)-Plans

10. 5
10
For the first table, replace the Source URL with the following
Web site citation:
Name of Web Page: The Future Value of Money
Name of Web Site: IRS
Year: 2014
Month: October
Day: 14
URL: https://www.irs.gov/retirement-plans/plan-participant-
employee/retirement-topics-benefits-of-saving-now
6
11
Insert a footnote on page 2 at the end of the table heading in the
Introduction section (the first line of the table), which ends with
6% annual return. Type the following for the footnote: The
calculation did not take into consideration the cost of living
adjustment (COLA). (Do not include the period.) Change the
number format for footnotes to a, b, c in the Footnotes dialog
box. (Click Apply, not Insert.)
6
12
Insert a blank page at the end of the report and insert a
bibliography with the title Works Cited. The bibliography
should be double-spaced with no paragraph spacing before or
after.
8
13
Format the bibliography with a font of Times New Roman and a
font size of 12 pt. Center the Works Cited title. All text in the
bibliography should be Black, Text 1 font color. Ensure that no
text is bold.
6
14
Position the insertion point at the top of page 2 and insert a

11. page break. Create a table of contents, with an Automatic Table
1 style, on the new page. Do not insert the page break on the
cover page. Ensure that the table of contents is entered
immediately to the left of the inserted page break. Note, Mac
users, create a Classic style table of contents.
5
15
Mark the following words as index entries, selecting Mark All
for each: contribution, Roth IRA, Traditional IRA, 403(b), and
401(k). Select the first occurrence of deduction and set a cross-
reference as See contribution
Note, please be sure to search your document to ensure that all
occurrences are marked as specified; press CTRL+F and use the
Navigation Pane to locate each one.
5
16
Add an index on a blank page at the end of the document. Use
Classic format and accept all other default settings.
8
17
Insert a footer with a centered page number, using Plain
Number 2 format. Do not display the page number footer on the
first page. Numbering begins with page 1 on the Table of
Contents page.
8
18
Ensure that the second table is on one page, and update the
Table of Contents.
6
19
Save the document and exit Word. Submit the document as
directed.
0
Total Points
100

12. Created On: 07/05/2019 1
EX16_WD_CH04_GRADER_CAP_HW - Retirement Plan
1.10