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Money that you contribute to a Roth 403(b) plan _______ eligible for tax deferral.

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Is not

May be

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.

Employees must work full-time in order to be eligible for 403(b) participation.

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True

False

False. Part-time employees are eligible unless certain plan requirements forbid them.

If you withdraw $100,000 from your 403(b) plan and roll over only $90,000 into a new plan, what will happen to the other $10,000?

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You will lose it to the government for good.

You will be taxed on it.

You will be required by law to reinstate it into a new 403(b).

You will be allowed to keep it tax-free.

You will be taxed on it. The IRS will consider the $10,000 to be income if you do not put it into a new 403(b) plan.

How are contributions to 403(b) plans made?

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Periodic, arbitrary payments by employees

Required payments

Reductions in salary

By diverting Social Security contributions to them

Reductions in salary. Employees sign agreements to let their employers take certain amounts from their wages and put them into the plans.

The alternative to a periodic 403(b) plan payout is a lump-sum distribution.

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True

False

True. You may take your proceeds little by little or all at once.

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