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1.
If you work for your city government, you are normally eligible for a 457 plan.
True. A 457 plan is specially made for city and state government employees.
2.
Yearly changes in the maximum allowed contribution to a 457 plan are based upon _______.
Inflation. The federal government indexes these changes to inflation; in years when the inflation rate isn't sufficiently high, there will not be a rise in the contribution limit.
3.
At what age MUST you begin taking distributions from your 457 plan?
73. This age is standard for many retirement plans.
4.
Which of the following employees is not eligible to participate in a 457 plan?
The secretary of a new, private startup company. 457 plans are allowed only for employees of government or non-profit companies.
5.
You can roll any 457 plan over into any account you wish.
False. There are restrictions on which plans can accept rollovers from which plans.