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1.
In the language of 403(b) plans, a MAC is _______.
The amount of money you are allowed to put into a 403(b) plan tax-free. Although the IRS provides formulas, the MAC, or "maximum amount contributable," is the amount itself.
2.
Taxes are deferred on contributions to a 403(b) plan until _______.
The individual begins making withdrawals. Age and retirement do not affect the tax status.
3.
A 403(b) rollover is the moving of your 403(b) plan from its current custodian (holder) to the government.
False. It is the moving of your 403(b) plan from its current custodian (holder) to another custodian.
4.
Money that you contribute to a Roth 403(b) plan _______ eligible for tax deferral.
Is not. In exchange for this, your withdrawals, provided that you follow the rules, will not be taxed. Neither will the earnings that have built up in your account.
5.
Who of the following would not be able to participate in a 403(b) plan?
A clerk at a highly profitable software firm. Only employees of non-profit companies may participate.
