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1.
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.
2.
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.
3.
In order to take an early distribution from a 403(b) plan due to severance from employment, how old (at the minimum) must you be in the year it is taken?
55. You must be at least 55 in the year that you take it.
4.
In the language of 403(b) plans, a MAC is _______.
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.
5.
Your employer may match the contributions you make to a Roth 403(b) plan.
True. Your employer may; however, the matches will be pre-tax.
