403b and 457 Retirement Plan Quiz

What is a 457 plan?

• A plan for saving for college expenses

• A retirement plan for NYS public employees

• A health insurance plan

• A plan for investing in stocks

What is the annual elective deferral limit for a 457(b) plan in 2023?

• $25,000

• $19,500

• $20,500

• $22,500

How are contributions taxed in a Traditional 457 plan?

• Contributions are taxed at a reduced rate

• Contributions are taxed at a fixed rate

• Contributions are taxed as income

• Contributions are not taxed

What is the main difference between Roth and Traditional 457 plans?

• Traditional plans have tax-free contributions

• Roth plans have higher contribution limits

• Traditional plans have tax-free withdrawals

• Roth plans have tax-free withdrawals

What type of companies run 403b plans?

• Non-profit organizations

• Educational institutions

• Government agencies

• For-profit companies

Which retirement plan requires more legwork from participants?

• 403b plan

• NYS 457 plan

• 401k plan

• IRA plan

Who coordinates and runs the NYS 457 plan?

• NYS

• Winning company

• Competitive bid process

• Nominal fees

Who typically manages 403b plans?

• Non-profit organizations

• Government agencies

• For-profit companies

• Individual investors

What is a 403(b) plan?

• A plan that allows employees of not-for-profit organizations to make contributions to a retirement savings account

• A plan that allows employees to make post-tax contributions to a college savings plan

• A plan that allows employees of not-for-profit organizations to make pre-tax contributions to a health plan.

• A method for paying off student loan

What is the elective salary deferral limit for 403(b) accounts in 2023?

• $20,000

• $22,500

• $25,000

• $30,000