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1.
The alternative to a periodic 403(b) plan payout is a lump-sum distribution.
True. You may take your proceeds little by little or all at once.
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?
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.
Your employer may match the contributions you make to a Roth 403(b) plan.
True. Your employer may; however, the matches will be pre-tax.
4.
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.
True. The law limits how much you may deduct from your taxable income when you participate in an employer-sponsored retirement plan.
5.
Employees must work full-time in order to be eligible for 403(b) participation.
False. Part-time employees are eligible unless certain plan requirements forbid them.