Which of the following are characteristics of a 457(b) plan used by a state and local government employer? I. Contributions to a 457(b) make the employee an active participant for IRA deductibility purposes. II. For a new employee under age 50, the contribution limit in 2023 is a total of $22,500 between the worker and the employer. III. Worker and employer contributions and earnings on these sources are not subject to the 10% EWP. IV. Contributions to a 457(b) may limit a worker's opportunity to contribute to a 403(b) or 401(k). A) I and IV B) I and II C) II and III D) III and IV

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Which of the following are characteristics of a 457(b) plan used by a state and local government employer?

I. Contributions to a 457(b) make the employee an active participant for IRA deductibility purposes.

II. For a new employee under age 50, the contribution limit in 2023 is a total of $22,500 between the worker and the employer.

III. Worker and employer contributions and earnings on these sources are not subject to the 10% EWP.

IV. Contributions to a 457(b) may limit a worker's opportunity to contribute to a 403(b) or 401(k).

A) I and IV

B) I and II

C) II and III

D) III and IV 

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