1 | Page
Ohio Life, Accident, & Health Insurance
Terms Questions and Correct Answers
401(k) Plan Ans: - one of the most popular types of qualified
employer plans.
- a form of defined contribution plan.
- allows both employer & employees to contribute to the plan.
- employees can defer part of their wages into the plan.
- these deferrals are not included in the employee's gross income;
as a result, they are not taxed.
403(b) Plan Ans: - retirement plan.
- reserved for non-profit organizations & their employees.
© 2025 All rights reserved
, 2 | Page
- employer and/or employee contribute funds into the plan.
- funds are directed into individual accounts, set up for each
participating employee.
- contributions are not taxable to the employee when they are
made.
- contributions grow tax-deferred until they are distributed.
- also called a tax-sheltered annuity plan (TSA).
457 Plan Ans: - qualified retirement plans.
- reserved for employees of state & local government units.
- eligible employees are allowed to make elective salary deferrals
into the plan on a pre-tax basis.
- earnings accumulate tax-deferred.
© 2025 All rights reserved
Ohio Life, Accident, & Health Insurance
Terms Questions and Correct Answers
401(k) Plan Ans: - one of the most popular types of qualified
employer plans.
- a form of defined contribution plan.
- allows both employer & employees to contribute to the plan.
- employees can defer part of their wages into the plan.
- these deferrals are not included in the employee's gross income;
as a result, they are not taxed.
403(b) Plan Ans: - retirement plan.
- reserved for non-profit organizations & their employees.
© 2025 All rights reserved
, 2 | Page
- employer and/or employee contribute funds into the plan.
- funds are directed into individual accounts, set up for each
participating employee.
- contributions are not taxable to the employee when they are
made.
- contributions grow tax-deferred until they are distributed.
- also called a tax-sheltered annuity plan (TSA).
457 Plan Ans: - qualified retirement plans.
- reserved for employees of state & local government units.
- eligible employees are allowed to make elective salary deferrals
into the plan on a pre-tax basis.
- earnings accumulate tax-deferred.
© 2025 All rights reserved
