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Portfolios 203: 403(b) Plans

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1.
In the language of 403(b) plans, a MAC is _______.
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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.
2.
Employees who work for for-profit organizations are allowed to participate in 403(b) plans.
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False. The Internal Revenue Code limits participation to those who work in the non-profit sector.
3.
The alternative to a periodic 403(b) plan payout is a lump-sum distribution.
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True. You may take your proceeds little by little or all at once.
4.
Money that you contribute to a Roth 403(b) plan _______ eligible for tax deferral.
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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.
5.
There are exceptions to the 60-day rule for 403(b) plan rollovers.
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True. If you can prove hardship to the IRS, you may be given longer than 60 days to complete a rollover in limited situations.