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1.
If you quit your job and take a distribution from your 457 plan before age 59½, you _______.
Will not be assessed a penalty. 457 plans do not assess penalties for early withdrawals upon termination of employment.
2.
If you work for a company that offers a 403(b) plan as well as a 457 plan, you can contribute to only one of them.
False. You can contribute to both of them.
3.
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.
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.
There are situations in which rolling over a 457 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.