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Portfolios 203: 403(b) Plans

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1.
What is the annual income limit for contributing to a Roth 403(b)?
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There is none. There is no income limit at all.
2.
Employees who work for for-profit organizations are allowed to participate in 403(b) plans.
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False. The Internal Revenue Code limits participation to those who work in the non-profit sector.
3.
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 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.
4.
Taxes are deferred on contributions to a 403(b) plan until _______.
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The individual begins making withdrawals. Age and retirement do not affect the tax status.
5.
In the language of 403(b) plans, a MAC is _______.
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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.