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1.
In a SIMPLE 401(k) plan, the employer may make either matching or non-matching contributions.
True. The employer is allowed to choose an option.
2.
There are situations in which a 401(k) rollover may result in you having to pay taxes.
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.
3.
Distributions from a 401(k) plan are allowed for all of the following except _______.
First-time home purchase. Distributions are not allowed for a first-time home purchase.
4.
If your employer matches your contributions to your Roth 401(k), those employer contributions are _______.
Pre-tax. Despite the Roth 401(k)'s purpose, these matches are actually pre-tax; but when you withdraw them, they will be taxed.
5.
If an employer makes non-elective contributions to an employee retirement plan, the employee may elect to take the contributions as cash instead.
False. Non-elective (or matching) contributions to the 401(k) plan may NOT be taken as cash.
6.
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?
$0. Employers are not required to match contributions.
7.
A _______ moves funds from one 401(k) to another without you ever touching the funds.
Direct rollover. This form of rollover takes place between your current account's custodian and the new one you have elected.