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Benefits Beginner:
Introduction to 403(b) Plans
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1.
A 403(b) rollover is the moving of your 403(b) plan from its current custodian (holder) to the government.
Choose wisely. There is only one correct answer.
True
False
False. It is the moving of your 403(b) plan from its current custodian (holder) to another custodian.
2.
How are contributions to 403(b) plans made?
Choose wisely. There is only one correct answer.
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.
3.
What is the annual income limit for contributing to a Roth 403(b)?
Choose wisely. There is only one correct answer.
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.
4.
Taxes are deferred on contributions to a 403(b) plan until _______.
Choose wisely. There is only one correct answer.
The individual begins making withdrawals
The individual retires
Age 59½
The individual begins making withdrawals. Age and retirement do not affect the tax status.
5.
Who of the following would not be able to participate in a 403(b) plan?
Choose wisely. There is only one correct answer.
A clerk at a highly profitable software firm
A church secretary
A scientist working for the Museum of Modern Art
A municipal employee
A clerk at a highly profitable software firm. Only employees of non-profit companies may participate.
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DONE