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Portfolios 203: 403(b) Plans

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1.
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. The law limits how much you may deduct from your taxable income when you participate in an employer-sponsored retirement plan.
2.
Money that you contribute to a Roth 403(b) plan _______ eligible for tax deferral.
Choose wisely. There is only one correct answer.
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.
3.
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.
False. It is the moving of your 403(b) plan from its current custodian (holder) to another custodian.
4.
The alternative to a periodic 403(b) plan payout is a lump-sum distribution.
Choose wisely. There is only one correct answer.
True. You may take your proceeds little by little or all at once.
5.
Employees must work full-time in order to be eligible for 403(b) participation.
Choose wisely. There is only one correct answer.
False. Part-time employees are eligible unless certain plan requirements forbid them.