Test your knowledge

Choose wisely. There is only one correct answer to each question.

Keep studying!

Review your answers below to learn more.

Employees who work for for-profit organizations are allowed to participate in 403(b) plans.

Choose wisely. There is only one correct answer.

True

False

False. The Internal Revenue Code limits participation to those who work in the non-profit sector.

A 403(b) rollover is the moving of your 403(b) plan from its current custodian (holder) to the government.

Choose wisely. There is only one correct answer.

True

False

False. It is the moving of your 403(b) plan from its current custodian (holder) to another custodian.

What is the annual income limit for contributing to a Roth 403(b)?

Choose wisely. There is only one correct answer.

There is none.

$100,000

It varies depending on marital or tax filing status.

The same limit that exists for a traditional 401(k)

There is none. There is no income limit at all.

If you participate in a 403(b) plan and you also have an individual retirement account, you might not be able to deduct your IRA contributions from your taxable income.

Choose wisely. There is only one correct answer.

True

False

True. The law limits how much you may deduct from your taxable income when you participate in an employer-sponsored retirement plan.

In order to take an early distribution from a 403(b) plan due to severance from employment, how old (at the minimum) must you be in the year it is taken?

Choose wisely. There is only one correct answer.

59 1/2

55. You must be at least 55 in the year that you take it.

© Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. In addition, we encourage you to read this important disclosure.