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Benefits Beginner: Introduction to 401(k) Plans

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1.
If your employer matches your contributions to your Roth 401(k), those employer contributions are _______.
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Pre-tax. Despite the Roth 401(k)'s purpose, these matches are actually pre-tax; but when you withdraw them, they will be taxed.
2.
If an employer makes non-elective contributions to an employee retirement plan, the employee may elect to take the contributions as cash instead.
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False. Non-elective (or matching) contributions to the 401(k) plan may NOT be taken as cash.
3.
Which of the following 401(k) distributions may incur a penalty if taken prior to age 59½?
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Paying for rent. Paying for rent is not one of the allowed hardship exceptions.
4.
Assume that Mary earns $200,000 this year and defers $10,000 into her 401(k) plan. How much is her employer required to match?
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$0. Employers are not required to match contributions.
5.
There are situations in which a 401(k) rollover may result in you having to pay taxes.
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True. If you don't roll over all of it, or if you don't place the funds into the new account within 60 days, you can be taxed on the amount that is not rolled over.
6.
In a SIMPLE 401(k) plan, the employer may make either matching or non-matching contributions.
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True. The employer is allowed to choose an option.
7.
Which type of 401(k) rollover is not allowed?
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Traditional 401(k) to a Roth 401(k). The others are allowed.