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Benefits Beginner: Introduction to 403(b) Plans

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1.
How are contributions to 403(b) plans made?
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Reductions in salary. Employees sign agreements to let their employers take certain amounts from their wages and put them into the plans.
2.
Your employer may match the contributions you make to a Roth 403(b) plan.
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True. Your employer may; however, the matches will be pre-tax.
3.
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?
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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.
4.
Taxes are deferred on contributions to a 403(b) plan until _______.
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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?
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A clerk at a highly profitable software firm. Only employees of non-profit companies may participate.