dave ramsey chapter 3 review - · pdf filestudent activity sheet ... dave ramsey chapter 3...

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1 CHAPTER 3 STUDENT ACTIVITY SHEET Traditional and Roth IRA Use the space below to compare and contrast a traditional IRA to a Roth IRA. What characteristics do they share and what is different about them? Characteristics: Similar Different

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Page 1: Dave Ramsey Chapter 3 Review -  · PDF fileSTUDENT ACTIVITY SHEET ... Dave Ramsey Chapter 3 Review. 4. 5. ... (age 17 & 15) and now have $16,000 in each account. However,

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CHAPTER 3 STUDENT ACTIVITY SHEET

Traditional and Roth IRAUse the space below to compare and contrast a traditional IRA to a Roth IRA. What characteristics do they share and what is different about them?

Characteristics:

Similar  Different

Page 2: Dave Ramsey Chapter 3 Review -  · PDF fileSTUDENT ACTIVITY SHEET ... Dave Ramsey Chapter 3 Review. 4. 5. ... (age 17 & 15) and now have $16,000 in each account. However,

2

CHAPTER 3 STUDENT ACTIVITY SHEET

Traditional and Roth IRAUse the space below to compare and contrast a traditional IRA to a Roth IRA. What characteristics do they share and what is different about them?

ANSWER KEY

Similar  Different

• 401﴾k﴿ funded through employer and may involve company matches.• Roth IRA grows tax free• Roth IRA offers more flexibility and tax­free saving.There is a penalty­free withdrawal if: 

• 59 and a half years old or older • Death/disability • First time house ﴾$10,000 max﴿

• Roth IRA–non­income spouse can contribute up to $5,000 ﴾2010﴿. • Best to rollover your 401﴾k﴿ when you leave a company. With a Roth IRA, you don’t have to worry about it.

Page 3: Dave Ramsey Chapter 3 Review -  · PDF fileSTUDENT ACTIVITY SHEET ... Dave Ramsey Chapter 3 Review. 4. 5. ... (age 17 & 15) and now have $16,000 in each account. However,

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Dave Ramsey Chapter 3 Review

Page 4: Dave Ramsey Chapter 3 Review -  · PDF fileSTUDENT ACTIVITY SHEET ... Dave Ramsey Chapter 3 Review. 4. 5. ... (age 17 & 15) and now have $16,000 in each account. However,

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Page 5: Dave Ramsey Chapter 3 Review -  · PDF fileSTUDENT ACTIVITY SHEET ... Dave Ramsey Chapter 3 Review. 4. 5. ... (age 17 & 15) and now have $16,000 in each account. However,

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