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US retirement accounts quiz: 401(k), IRA, Roth and HSA

Free questions with answers on US retirement accounts: the 401(k) match, Roth vs traditional, IRAs, the HSA's triple tax break, target-date funds, which account to fund first, and what an early withdrawal really costs. US rules.

Tap an answer to check it, or open "Show the answer" under each question. Every question comes from a free 3-minute lesson, linked under its answer. Based on US rules. Educational content, not financial advice.

Question 1 of 21

Employer matches dollar-for-dollar up to 4%, and you contribute 4%. What return did you just lock in on that money?

  1. An instant 50%
  2. It depends on the market
  3. An instant 4%
  4. An instant 100%
Show the answer

Answer: D · An instant 100%

They doubled your contribution before it's even invested — a guaranteed 100% you can't get anywhere else.

📚 Learn it: The 401(k) & Free Money

Question 2 of 21

With a ROTH account, when do you pay taxes on it?

  1. Now — and qualified withdrawals are tax-free
  2. Later — it goes in pre-tax and is taxed in retirement
  3. Never — neither deposits nor growth are ever taxed
  4. Both now and again later
Show the answer

Answer: A · Now — and qualified withdrawals are tax-free

You're taxed on the money going in; qualified withdrawals, including all growth, come out tax-free.

📚 Learn it: Roth vs Traditional

Question 3 of 21

What's the main difference between an IRA and a 401(k)?

  1. An IRA holds only cash; a 401(k) can be invested in funds
  2. An IRA is taxed every year; a 401(k) grows tax-deferred
  3. An IRA comes through your employer; a 401(k) you open yourself
  4. You open an IRA yourself; a 401(k) comes through your employer
Show the answer

Answer: D · You open an IRA yourself; a 401(k) comes through your employer

An IRA is your own account at a brokerage; a 401(k) is offered through your job, often with a match.

📚 Learn it: The IRA: Your Own Account

Question 4 of 21

What makes an HSA uniquely powerful?

  1. Tax-free going in, but every withdrawal is taxed
  2. Replaces health insurance, so you can skip premiums
  3. No contribution limit, so you can shelter as much as you want
  4. Tax-free going in, growing, AND coming out for medical
Show the answer

Answer: D · Tax-free going in, growing, AND coming out for medical

The triple tax advantage — pre-tax in, tax-free growth, tax-free medical withdrawals — is unmatched.

📚 Learn it: The HSA: The Triple-Tax Secret

Question 5 of 21

The pro strategy with an HSA is to...

  1. Spend it all by December so none of it expires
  2. Invest it and let it compound for years
  3. Cash it out at 30 to pay other debts
  4. Use it for each co-pay as it comes due
Show the answer

Answer: B · Invest it and let it compound for years

Paying small bills out of pocket and letting the HSA grow turns it into a tax-free retirement fund.

📚 Learn it: The HSA: The Triple-Tax Secret

Question 6 of 21

How do you choose a target-date fund?

  1. Pick the year closest to your own birth year
  2. Pick the year closest to your retirement
  3. Pick the fund with the best return last year
  4. Pick the fund with the lowest share price
Show the answer

Answer: B · Pick the year closest to your retirement

Select the fund with the date nearest your planned retirement — e.g., 'Target 2055.'

📚 Learn it: Target-Date Funds: Autopilot

Question 7 of 21

Of your investing buckets, what should you fund FIRST?

  1. Your 401(k) up to the employer match
  2. A Roth IRA, before any 401(k) savings
  3. Your HSA, because it's triple tax-free
  4. A taxable brokerage for flexible access
Show the answer

Answer: A · Your 401(k) up to the employer match

The match is an instant 100% return. Nothing else comes close — start there.

📚 Learn it: The Right Order to Fill Your Money Buckets

Question 8 of 21

Can you contribute to both a 401(k) and an IRA in the same year?

  1. Only once you turn 50 and qualify for catch-up
  2. No — the IRS makes you choose just one each year
  3. Yes — they have separate contribution limits
  4. Yes — but they both share a single combined limit
Show the answer

Answer: C · Yes — they have separate contribution limits

The IRS sets separate limits; maxing one doesn't reduce what you can add to the other.

📚 Learn it: Use Both: 401(k) + IRA

Question 9 of 21

What usually happens if you withdraw from a 401(k) before 59 and a half?

  1. Just a 10% penalty, no income tax
  2. A 10% penalty plus income tax
  3. It's tax-free since it's your money
  4. Only income tax, no penalty
Show the answer

Answer: B · A 10% penalty plus income tax

The early-withdrawal penalty plus income tax takes a big bite — before counting lost growth.

📚 Learn it: Don't Raid Your 401(k): The Early-Withdrawal Trap

Question 10 of 21

Employer offers 100% match up to 6%. You contribute 3%. What happens?

  1. You get half the match (you missed half the free money)
  2. You get the full 6% match (any amount unlocks it all)
  3. You get no match (you must hit 6% to get anything)
  4. You get a 1.5% match (half of your 3% contribution)
Show the answer

Answer: A · You get half the match (you missed half the free money)

You only get 3% match (matching your 3%). You missed out on 3% MORE free money. On a $60k salary = $1,800/year wasted. Over 30 years invested = $200k+ lost.

📚 Learn it: Your Boss Will Literally Give You Free Money

Learn it in the app: Retirement & Free Money lessons, free →

3-minute lessons with a quiz, XP and streaks in the free app. No sign-up needed.

Question 11 of 21

Your job matches 100% of the first 5% of pay. You earn $50k. What's the most free match money available?

  1. $250
  2. $5,000
  3. $1,250
  4. $2,500
Show the answer

Answer: D · $2,500

5% of $50,000 = $2,500. Contribute that much and they match it dollar-for-dollar.

📚 Learn it: The Free Money 1 in 4 People Leave Behind

Question 12 of 21

You're 25, earning $45k, expect to earn more later. Best pick for new $200/mo contributions?

  1. HYSA / money market
  2. Taxable brokerage
  3. Roth IRA / Roth 401k
  4. Pre-tax IRA / 401k
Show the answer

Answer: C · Roth IRA / Roth 401k

Roth locks in today's low tax rate. Decades of growth come out tax-free.

📚 Learn it: Roth vs Traditional: Pay Tax Now or Later

Question 13 of 21

Main Roth IRA advantage over taxable account?

  1. Higher returns from Roth-only funds
  2. Government insurance against losses
  3. Contributions are tax-deductible
  4. All gains and withdrawals are TAX-FREE
Show the answer

Answer: D · All gains and withdrawals are TAX-FREE

Returns are identical (same investments). Difference: in Roth, you keep 100% of gains. In taxable, you keep ~80-85% of gains after long-term capital gains taxes. Over decades, massive difference.

📚 Learn it: The Roth IRA Tax Cheat Code

Question 14 of 21

What's the #1 reason to contribute up to your 401(k) match?

  1. It's FDIC-insured, so it can't lose value
  2. It lifts your credit score as balances grow
  3. It's literally free money from your employer
  4. It's required by law once you're eligible
Show the answer

Answer: C · It's literally free money from your employer

Not grabbing the full match means leaving free money on the table — the best deal in personal finance.

📚 Learn it: The 401(k) & Free Money

Question 15 of 21

In the 'seed vs harvest' analogy, Roth taxes...

  1. Just the tiny seed
  2. Just the big harvest
  3. Both
  4. Neither
Show the answer

Answer: A · Just the tiny seed

Roth taxes the small contribution now, so the much larger amount it grows into is tax-free.

📚 Learn it: Roth vs Traditional

Question 16 of 21

Who can open an IRA?

  1. Only people earning over $100,000
  2. Only full-time staff at big companies
  3. Almost anyone with earned income
  4. Only people whose job has no 401(k)
Show the answer

Answer: C · Almost anyone with earned income

IRAs are widely available to anyone with earned income.

📚 Learn it: The IRA: Your Own Account

Question 17 of 21

What does a target-date fund do automatically?

  1. Shifts from conservative to aggressive with age
  2. Shifts from aggressive to conservative as you age
  3. Moves into whatever sector did best last year
  4. Locks in gains so your balance can't go down
Show the answer

Answer: B · Shifts from aggressive to conservative as you age

It gradually de-risks — more bonds, fewer stocks — as retirement approaches.

📚 Learn it: Target-Date Funds: Autopilot

Question 18 of 21

Why is employer match called 'free money'?

  1. It's a loan your employer lets you pay back tax-free
  2. Your employer literally adds money to YOUR account
  3. The IRS fully refunds YOUR contributions at tax time
  4. It's a cash bonus added to YOUR paycheck each month
Show the answer

Answer: B · Your employer literally adds money to YOUR account

Your employer DEPOSITS money INTO your retirement account FOR you. Pure, free, additional compensation. Anyone not maxing it is leaving thousands per year on the table.

📚 Learn it: Your Boss Will Literally Give You Free Money

Question 19 of 21

What does the match do to the money you save?

  1. Reduces your salary by the amount the company adds
  2. Locks it all away until you turn 70
  3. Gives half your savings to your employer
  4. Adds your employer's money on top of yours
Show the answer

Answer: D · Adds your employer's money on top of yours

Up to the limit, your employer stacks their money onto yours — instantly boosting your savings.

📚 Learn it: The 401(k) & Free Money

Question 20 of 21

Why might a 25-year-old lean Roth?

  1. Decades of growth will all come out tax-free
  2. Roth money is protected from market drops
  3. The upfront tax break is biggest when young
  4. Roth accounts have no contribution limit
Show the answer

Answer: A · Decades of growth will all come out tax-free

With many years of compounding ahead, locking in tax-free growth is hugely valuable.

📚 Learn it: Roth vs Traditional

Question 21 of 21

Why is it great for beginners?

  1. It buys the hottest stocks for you — no research needed
  2. It's backed by the US government — your balance can't drop
  3. It's diversified and self-managing — set it and forget it
  4. It's tax-free in any account — no IRS forms to deal with
Show the answer

Answer: C · It's diversified and self-managing — set it and forget it

One fund gives instant diversification and rebalances itself, so there's nothing to maintain.

📚 Learn it: Target-Date Funds: Autopilot

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