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1.
Taxes are deferred on contributions to a 403(b) plan until _______.
The individual begins making withdrawals. Age and retirement do not affect the tax status.
2.
Employees who work for for-profit organizations are allowed to participate in 403(b) plans.
False. The Internal Revenue Code limits participation to those who work in the non-profit sector.
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.
True. The law limits how much you may deduct from your taxable income when you participate in an employer-sponsored retirement plan.
4.
A 403(b) rollover is the moving of your 403(b) plan from its current custodian (holder) to the government.
False. It is the moving of your 403(b) plan from its current custodian (holder) to another custodian.
5.
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.