Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
If you withdraw $50,000 from your 457 plan and roll over only $40,000 into a new plan, what will happen to the other $10,000?
You will be taxed on it. The IRS will consider the $10,000 to be income if you do not put it into a new, eligible account.
2.
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.
3.
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.
4.
At what age MUST you begin taking distributions from your 457 plan?
73. This age is standard for many retirement plans.
5.
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.