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1.
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.
2.
If you participate in a 403(b) plan and you have an individual retirement account, you might not be able to deduct your IRA contributions from your taxable income.
True. The law limits how much you may deduct from your taxable income when you participate in an employer-sponsored retirement plan.
3.
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.
4.
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.
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.
