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1.
Early distributions from a 401(k) plan may be made for a first-time home purchase.
False. Early distributions may be made from a 401(k) plan for several reasons, but a first-time home purchase is not one of them.
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.
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.
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?
$0. Employers are not required to match contributions.
5.
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.
6.
Which of the following statements about Roth 401(k) plans is false?
You may contribute to a Roth 401(k) plan only if you are within a certain income limit. The truth is, there are no income limits that inhibit your ability to contribute to a Roth 401(k).
7.
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.