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1.
Which type of 401k was designed for self-employed businesspeople with no employees?
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Solo 401k. The solo was designed for business owners with no employees.
2.
To roll over a 401(K) plan means to _______.
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Move it to a new custodian. Rolling over means moving from one custodian to another.
3.
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.
4.
If an employee contributes money into a 401(k) plan from her paycheck instead of receiving it as cash, that contribution is called _______.
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An elective contribution. Elective contributions are made by choice from one's earnings.
5.
If you do a 401(k) rollover by removing and depositing the money yourself, you will be required to withhold some of the funds for taxes.
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True. You must withhold 20% for taxes.
6.
In establishing eligibility requirements for a 401(k) plan, an employer is allowed to require that a certain number of hours be worked.
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True. An employer may set a minimum service requirement.
7.
Early distributions from a 401(k) plan may be made for a first-time home purchase.
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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.