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What is the annual income limit for contributing to a Roth 403(b)?

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There is none.

$100,000

It varies depending on marital or tax filing status.

The same limit that exists for a traditional 401(k)

There is none. There is no income limit at all.

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?

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59 1/2

55. You must be at least 55 in the year that you take it.

There are exceptions to the 60-day rule for 403(b) plan rollovers.

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True

False

True. If you can prove hardship to the IRS, you may be given longer than 60 days to complete a rollover in limited situations.

How are contributions to 403(b) plans made?

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Periodic, arbitrary payments by employees

Required payments

Reductions in salary

By diverting Social Security contributions to them

Reductions in salary. Employees sign agreements to let their employers take certain amounts from their wages and put them into the plans.

Employees who work for for-profit organizations are allowed to participate in 403(b) plans.

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True

False

False. The Internal Revenue Code limits participation to those who work in the non-profit sector.

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