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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 also 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.
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?
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.
What is the annual income limit for contributing to a Roth 403(b)?
There is none. There is no income limit at all.
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.
