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1.
Employees who work for for-profit organizations are allowed to participate in 403(b) plans.
False. The Internal Revenue Code limits participation to those who work in the non-profit sector.
2.
There are exceptions to the 60-day rule for 403(b) plan rollovers.
True. If you can prove hardship to the IRS, you may be given longer than 60 days to complete a rollover in limited situations.
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.
How are contributions to 403(b) plans made?
Reductions in salary. Employees sign agreements to let their employers take certain amounts from their wages and put them into the plans.
5.
The alternative to a periodic 403(b) plan payout is a lump-sum distribution.
True. You may take your proceeds little by little or all at once.
