Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
What is the annual income limit for contributing to a Roth 403(b)?
Choose wisely. There is only one correct answer.
There is none. There is no income limit at all.
2.
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?
Choose wisely. There is only one correct answer.
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.
3.
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.
4.
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?
Choose wisely. There is only one correct answer.
55. You must be at least 55 in the year that you take it.
5.
Employees who work for for-profit organizations are allowed to participate in 403(b) plans.
Choose wisely. There is only one correct answer.
False. The Internal Revenue Code limits participation to those who work in the non-profit sector.