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Portfolios 203: 403(b) Plans

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1.
Employees must work full-time in order to be eligible for 403(b) participation.
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False. Part-time employees are eligible unless certain plan requirements forbid them.
2.
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.
3.
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.
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?
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55. You must be at least 55 in the year that you take it.
5.
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.