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1) All of the following are events that may cause a plan document to be amended EXCEPT:

1. Flawed language
2. A change in marital status
3. An expanded employee populatio
4. Adoption of a loan program

Reveal answer 2) Which of the following statements regarding Form 8955-SSA is/are TRUE? I. It is used to report deferred vested benefits to the IRS. II. It must be filed by the last day of the seventh month following the plan year end (plus extensions). III. It contains a listing of the participants who have terminated employment and are still due a vested benefit from the plan.

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 3) Based on the following, what is/are the maximum loan amount the participant may borrow? • The participant’s account balance is $13,000. • The participant’s vested account balance is $5,200. • The participant does not have any other loans. I. $10,00 if the plan allows outside collateral II. $2,600 if the plan does not allow outside collateral III. $50,000 if the plan allows outside collateral

1. I only
2. II only
3. I and II only
4. II and III only

Reveal answer 4) All of the following statements are requirements that must be met in a participant loan program in order to avoid a PT, EXCEPT:

1. Loans must be made available to participants on a reasonably equivalent basis
2. Loans must not be made available to HCEs in an amount greater than the amount available to NHCEs
3. The plan document must contain the terms of the loan program, or the employer must adopt a formal loan policy or procedure
4. All loans must bear a reasonable rate of interest

Reveal answer 5) All of the following are duties of the plan administrator, EXCEPT:

1. Hire plan service providers such as the attorney
2. Rule on claims for benefits
3. Determine eligibility for plan participatio
4. Draft the articles of incorporatio

Reveal answer 6) Which of the following statements regarding brother-sister controlled groups is/are TRUE? I. There must be 5 or fewer common owners. II. The ownership percentage must satisfy an 80% common ownership test. III. The ownership percentage must satisfy a 50% identical ownership test.

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 7) All of the following statements regarding pre-tax catch-up contributions are TRUE, EXCEPT:

1. They are additional contributions that may only be made by certain older plan participants
2. They are classified as pre-tax catch-up contributions when the catch-up eligible participant has reached a limit in the law or the plan
3. Individuals must attain age 50 by the date they make the contribution
4. There is a maximum limit that is indexed annually for cost-of-living increases

Reveal answer 8) All of the following statements regarding the 401(k) hardship general standards are TRUE, EXCEPT:

1. The general standard has two parts, the events test and the needs test
2. A participant must have an immediate and heavy financial need to be granted the withdrawal
3. Purchase of an automobile to commute to work may be considered a hardship event
4. The amount of the need may include estimated taxes and penalties

Reveal answer 9) All of the following are benefits provided by a pension benefit plan, EXCEPT:

1. Retirement income to employees
2. Unemployment benefits
3. Disability retirement benefits
4. Retirement savings through individual accounts

Reveal answer 10) Based on the following information, determine the maximum loan amount that Participant C can take on December 31, 2014: • The plan allows two outstanding loans. • Participant C’s vested balance as of December 31, 2014 is $60,000. • Participant C has an outstanding loan, which had a balance of $10,000 on December 31, 2013. • The balance of Participant C’s outstanding loan is $6,000 on December 31, 2014.

1. $6,000
2. $10,000
3. $24,000
4. $30,000

Reveal answer 11) Based on the following information, determine the latest date the participant must begin receiving an RMD: • The participant’s date of birth is September 1, 1944. • The participant is a 50% owner. • The participant is still actively employed.

1. September 1, 2014
2. March 1, 2015
3. April 1, 2015
4. December 31, 2015

Reveal answer 12) Based on the following information, determine the maximum loan amount tha Participant K can take on December 31, 2014: • The plan allows two loans at one time. • The Participant does not have a loan. • The Participant would like to take the maximum loan amount available. • The Participant’s vested account balance as of December 31, 2014 is $40,000.

1. $0
2. $10,000
3. $20,000
4. $40,000

Reveal answer 13) All of the following guidance may be issued by the DOL, EXCEPT:

1. Determination letters
2. Advisory opinions
3. News releases
4. Labor regulations

Reveal answer 14) All of the following statements regarding hardship withdrawals are TRUE, EXCEPT:

1. The plan’s hardship provisions must be defined
2. The definition of hardship must be applied in a uniform manner
3. The amount available must be determined in a uniform manner
4. Hardship withdrawals must be offered in all 401(k) plans

Reveal answer 15) All of the following plans may roll over a distribution into another qualified plan, EXCEPT:

1. 403(b) pla
2. Profit sharing pla
3. SEP
4. Nonqualified pla

Reveal answer 16) All of the following are events that require disclosures to plan participants, EXCEPT:

1. Receipt of sales inventory
2. Distribution request
3. Enrollment
4. Loan request

Reveal answer 17) Which of the following IRS programs is/are available for qualified plans to correct plan defects? I. VCP II. DFVC III. SCP

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 18) All of the following statements are requirements that must be met in a participant loan program in order to avoid current taxation, EXCEPT:

1. The loan is actually repaid according to the loan terms
2. The term of the loan is not too long
3. The amount of the loan is not too much
4. The loan is limited to the value of the account balance

Reveal answer 19) All of the following are automatically parties-in-interest, EXCEPT:

1. A named beneficiary for a plan participant
2. A spouse of the 100% owner of the plan sponsor
3. Counsel to the pla
4. An officer of the employer organizatio

Reveal answer 20) All of the following statements regarding vesting are TRUE, EXCEPT:

1. Pre-tax elective contributions are always 100% vested immediately
2. Vesting must be 100% upon death
3. A defined contribution plan is required to use a vesting schedule at least as favorable as the six-year graded or the three-year cliff vesting schedules for employer contributions
4. Vesting must be 100% upon attainment of normal retirement age

Reveal answer 21) Which of the following statements regarding the notice given to a participant who has been automatically enrolled in a 401(k) plan is /are TRUE? I. It must explain the participant’s right to choose a different pre-tax elective contribution rate. II. It must explain how the pre-tax elective contribution will be invested if the participant does not make an investment election. III. It must explain the participant’s right to elect not to make a pre-tax elective contribution.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 22) All of the following statements regarding rollovers are TRUE, EXCEPT:

1. A separate account is set up and maintained for the employee’s rollover account
2. A plan is not required to accept rollovers from other plans
3. The participant pays taxes on the amounts rolled over
4. The rollover account is fully vested at all times

Reveal answer 23) All of the following may be corrected under the VFC program, EXCEPT:

1. Delinquent payment of employer contributions
2. Payment of dual compensation to plan fiduciaries
3. Purchase of assets by plan from parties-in-interest
4. Benefit payments based on improper valuation of plan assets

Reveal answer 24) Which of the following is/are paper records that should be kept indefinitely even though they are transferred to an electronic recordkeeping system? I. Stock certificates II. Documents executed under seal III. Notarized documents

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 25) All of the following family members attribute their stock ownership under the attribution rules for controlled groups, EXCEPT:

1. Minor child to parent
2. Adult child to parent where the parent owns 25% of the business
3. Grandchild to grandparent where grandparent owns 75% of the business
4. Parent to adult child where child owns 75% of the business

Reveal answer 26) Based on the following information, determine the participant’s vested percentage as of December 31, 2014: • A vesting year of service is defined as a calendar year in which the participant worked more than 1,000 hours of service. • The vesting schedule is a six-year graded schedule. • The plan is a profit sharing plan effective March 1, 1991. • The plan’s NRD is age 65. • The participant is a fulltime employee who was hired January 20, 2011. • The participant’s date of birth is October 25, 1976.

1. 20%
2. 40%
3. 60%
4. 80%

Reveal answer 27) All of the following statements regarding characteristics of defined benefit plans are TRUE, EXCEPT:

1. A specified benefit is promised to be paid at retirement
2. The employer assumes the investment risk
3. The benefits are usually expressed as a dollar amount to be paid as an annuity
4. Younger employees require higher contributions than older employees given the same benefit level

Reveal answer 28) All of the following are retirement benefit formulas that may be used in a defined benefit plan, EXCEPT:

1. $500 per month
2. $25 per month times years of service
3. 75% of final average compensatio
4. 5% of monthly compensation times years of service

Reveal answer 29) All of the following statements regarding defined contribution plans are TRUE, EXCEPT:

1. A money purchase plan obligates the employer to contribute a specific amount or percentage of the participant’s compensation to the plan each year
2. A KSOP is a combination 401(k) and ESOP plan
3. A stock bonus plan is a profit sharing plan that generally distributes shares of company stock to terminated participants
4. A money purchase plan contribution formula generally will not exceed 25% of compensation

Reveal answer 30) Based on the following information, determine the employee’s entry date: • The plan is a calendar year plan. • The plan’s eligibility requirements are age 21 and one year of service. • One year of service is defined as a 12-month period in which an employee works 1,000 hours of service. • The entry dates are the first day of the plan year or the first day of the seventh month of the plan year following when the eligibility requirements are met. • The employee has worked 1,000 hours during his first year of employment. • The employee’s date of birth is September 21, 1993. • The employee’s date of hire is February 4, 2014.

1. July 1, 2014
2. September 21, 2014
3. January 1, 2015
4. February 3, 2015

Reveal answer 31) All of the following statements are general requirements that must be met for a plan to be qualified, EXCEPT:

1. It must be communicated to employees
2. It must be established to include all former employees
3. It must be intended to be permanent
4. It must be in writing

Reveal answer 32) All of the following statements regarding IRS programs available for correction of plan defects are TRUE, EXCEPT:

1. SCP is available to correct insignificant operational failures at any time
2. SCP is available to correct failures involving misuse of plan assets
3. VCP can be used to correct plan document failures
4. VCP can be used to correct demographic failures

Reveal answer 33) All of the following are characteristics of prototype plans, EXCEPT:

1. No pooling of plan assets among employers
2. More flexible than individually designed plans
3. Includes an adoption agreement
4. Pre-approved plan document language

Reveal answer 34) All of the following statements regarding the DOL voluntary correction programs are TRUE, EXCEPT:

1. Delinquent Forms 5500 may be filed under the DOL programs with all or a portion of the civil penalties being waived
2. Delinquent Forms 1099-R may be filed
3. Delinquent participant contributions may be corrected
4. Sale of assets by plans to parties-in-interest may be corrected

Reveal answer 35) Which of the following statements regarding the potential consequences of plan disqualification is/are TRUE? I. Earnings on plan assets may become currently taxable to the trust. II. The employer’s contribution deductions may be disallowed to the extent participants are not vested. III. Participants may have to include vested benefits in their gross income.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 36) All of the following statements regarding 403(b) plans are TRUE, EXCEPT:

1. Certain tax-exempt organization may sponsor a 403(b) plan
2. They may be funded through the use of mutual funds held in a custodial account
3. The sections in the IRC that govern 403(b) plans are the same as those that govern all other qualified plans
4. Originally, these plans had to be invested in annuity contracts

Reveal answer 37) Which of the following statements regarding employee benefit plans is/are TRUE? I. Pension benefit plans provide retirement income. II. Welfare benefit plans provide a variety of benefits. III. Employee benefit plans often are provided as an integral part of a total compensation package.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 38) All of the following statements regarding fidelity bond requirements are TRUE, EXCEPT:

1. Generally, the maximum bond amount is $500,000
2. Generally, the minimum bond amount is $1,000
3. A bond is not required if the owner is the only participant
4. The bond amount is based on plan assets

Reveal answer 39) All of the following statements regarding rollovers for a participant who has separated from service are TRUE, EXCEPT:

1. There must be a distributable event for a rollover to occur
2. There is a 50% excise tax for failure to take the distribution upon termination of employment before NRA
3. The rollover must occur within 60 days of receipt of the distribution
4. There is a 20% federal income tax withholding on amounts over $200 distributed to the participant and that are eligible rollover distributions

Reveal answer 40) All of the following are PTs, EXCEPT:

1. The sale of stock from an officer of the plan sponsor to the pla
2. A loan from the plan to the plan’s counsel
3. The purchase of land by a director of the plan sponsor from the pla
4. A purchase by the plan of a mutual fund from a brokerage firm that has no authority or control of plan investments

Reveal answer 41) All of the following statements regarding characteristics of profit sharing plans are TRUE, EXCEPT:

1. They must contain a specific contribution allocation formula
2. They may be used to reward employees for their efforts
3. The employer may exercise discretion over the amount contributed to the plan each year
4. Contributions must be based on actual profits

Reveal answer 42) Based on the following information, all of the following may be filed with Form 5500, EXCEPT: • The plan is a 401(k) plan. • There are 455 participants. • $10,000 in fees was paid by the plan for administration.

1. Schedule C
2. Schedule G
3. Schedule H
4. Schedule SB

Reveal answer 43) All of the following must be addressed in the SPD, EXCEPT:

1. Eligibility requirements
2. Contribution allocation provisions
3. Distribution of benefits
4. Submission date of the SPD to the IRS

Reveal answer 44) All of the following describe allowable withdrawals, EXCEPT:

1. Withdrawal of after-tax employee contributions
2. Withdrawal of rollover contributions
3. Withdrawal at NRA
4. Withdrawal of employer profit sharing contributions deposited two years ago

Reveal answer 45) Based on the following information, determine the maximum loan amount that Participant M can take on December 31, 2014: • The plan allows one outstanding loan at a time. • Participant M’s account balance as of December 31, 2014 is $12,000. • Participant M’s vested account balance as of December 31, 2014 is $8,000. • Participant M does not have an outstanding loan. • The plan allows only plan assets as collateral for the loan.

1. $4,000
2. $6,000
3. $8,000
4. $10,000

Reveal answer 46) All of the following can be used to determine a participant's benefit in a defined benefit plan, EXCEPT:

1. Career average compensatio
2. Plan’s benefit formula
3. Interest and dividends
4. Final average compensatio

Reveal answer 47) All the following guidance can be issued by the IRS, EXCEPT:

1. Legislative regulations
2. Corrective regulations
3. Temporary regulations
4. Final regulations

Reveal answer 48) All of the following statements regarding distributions are TRUE, EXCEPT:

1. An in-plan Roth conversion is subject to a 20% federal income tax withholding
2. An eligible rollover distribution paid directly to the participant is subject to 20% federal income tax withholding
3. A distribution that is not an eligible rollover distribution paid directly to the participant is subject to a 10% withholding that may be waived by the participant
4. A distribution amount of $200 or less is not subject to withholding

Reveal answer 49) All of the following statements regarding 401(k) plans are TRUE, EXCEPT:

1. Designated Roth contributions are elective contributions
2. A catch-up eligible participant may defer $23,000 in calendar year 2014 if no other limits are affected
3. An employer may make matching contributions to a 401(k) plan
4. An employee can defer the maximum IRC §402(g) dollar limit in each plan of two different employers in the same calendar year

Reveal answer 50) Based on the following information, determine the amount of the fidelity bond required for a 401(k) plan: There are 750 participants Total assets equal $31,550,000 Assets invested in employer stock equal $859,000

1. $1,000
2. $500,000
3. $859,000
4. $1,000,000

Reveal answer 51) All of the following are safe harbor electronic document record management practices and audits requirements, EXCEPT:

1. Selecting an off-site storage locatio
2. Providing an indestructible storage facility
3. Providing a secure storage environment
4. Observing a quality assurance program

Reveal answer 52) Which of the following statements regarding cash balance plans is/are TRUE? I. It is a defined benefit plan that defines the guaranteed benefit in the form of an account balance rather than a monthly benefit payable at normal retirement age. II. The employee bears the risk of investment. III. The annuity form of benefit may not exceed the IRC §415 maximum benefit limitation for defined benefit plans.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 53) All of the following should be documented and archived each year, EXCEPT:

1. Sales meeting minutes
2. QDRO procedures
3. Key employee informatio
4. SPD

Reveal answer 54) All of the following incidents are 401(k) hardship safe harbor withdrawal events, EXCEPT:

1. Funeral expense for the childre
2. Repair of the engine for the participant’s boat
3. Roof repair paid for damage to the participant’s principal residence due to a tornado
4. Closing costs paid for the participant’s principal residence

Reveal answer 55) All of the following statements regarding a QJSA in a defined benefit plan are TRUE, EXCEPT:

1. A plan may choose to require a participant to be married for at least one year before treating that participant as married for QJSA purposes
2. A QJSA is a single life annuity for an unmarried participant
3. The amount of the survivor annuity must not be less than 50% of the amount payable during the period that the participant and spouse are both alive
4. All married participants are required to receive their distribution in the form of a QJSA

Reveal answer 56) All of the following statements regarding RMDs are TRUE, EXCEPT:

1. A terminated participant turning 70½ may choose to receive an RMD by December 31 of the year the participant becomes 70½
2. An RMD is made one time and when made no further distributions need to occur
3. Participants reaching age 70½ and retiring can postpone receiving their first RMD until April 1st of the calendar year following the year they reach age 70½
4. Participants who are 5% owners must begin minimum distributions by April 1st of the calendar year following the year in which they attain age 70½ even if still employed

Reveal answer 57) All of the following describe events that may cause a plan document to be amended, EXCEPT:

1. A change in the IRS determination letter process
2. A new IRS regulation that interprets a law
3. The plan sponsor changes its qualified plan goals
4. A law change that affects the pla

Reveal answer 58) All of the following statements regarding elective contributions are TRUE, EXCEPT:

1. Pre-tax elective contributions reduce the employee’s current taxable income for federal income tax purposes
2. Pre-tax elective contributions reduce compensation for Social Security taxes
3. Pre-tax catch-up contributions are pre-tax elective contributions in excess of an applicable limit
4. The IRC §402(g) dollar limit is adjusted annually for cost-of-living increases

Reveal answer 59) Based on the following information, determine the participant’s eligibility date: • The plan is a calendar year plan. • The plan’s eligibility requirements are age 21 and one year of service. • One year of service is defined as a 12-month period in which an employee works 1,000 hours of service. • The employee has worked 1,000 hours during his first year of employment. • The employee’s date of birth is April 15, 1994. • The employee’s date of hire is November 1, 2014.

1. November 1, 2014
2. January 1, 2015
3. April 15, 2015
4. November 1, 2015

Reveal answer 60) All of the following statements regarding characteristics of an ESOP are TRUE, EXCEPT:

1. It may be used to create a market for privately held employer stock
2. It generally invests more than 50% of its assets in employer stock
3. It may borrow money to purchase employer stock
4. It may be used as a method to transfer ownership of a company to its employees

Reveal answer 61) All of the following must be specified in the plan document for a plan to be qualified, EXCEPT:

1. Benefits may be assigned to participant creditors
2. The maximum period of time before a participant is granted ownership of benefits
3. In some plans, payment of benefits in the form of a qualified joint and survivor annuity
4. Cover a required minimum number of employees

Reveal answer 62) All of the following plan records should be retained by the plan sponsor, EXCEPT:

1. Full and complete plan document properly dated and signed
2. Form 5500
3. Letters of appreciation to participants for jobs well done
4. SPD

Reveal answer 63) Based on the following information, determine when Participant A will reach NRA: • The plan uses the maximum NRA allowed under the IRC and ERISA. • Participant A’s date of birth is July 1, 1951. • Participant A's date of hire was June 1, 2007. • Participant A's date of plan participation was July 1, 2007. • The plan year end is June 30th.

1. January 1, 2011
2. July 1, 2011
3. January 1, 2012
4. July 1, 2012

Reveal answer 64) All of the following statements regarding ERISA are TRUE, EXCEPT:

1. It provided rules to determine when a participant is vested in benefits
2. It established plan termination insurance
3. It established IRAs
4. It established educational requirements for actuaries

Reveal answer 65) Which of the following is/are provided to enroll a new participant in a profit sharing plan? I. A summary plan description II. A beneficiary designation III. An IRA prospectus

1. II only
2. III only
3. I and II only
4. I and III only

Reveal answer 66) All of the following statements regarding withdrawals are TRUE, EXCEPT:

1. A 401(k) plan may allow withdrawals after a participant has reached age 59½
2. A profit sharing plan may offer withdrawals on funds that have been held in the plan at least two years
3. A defined benefit plan may offer withdrawals to participants who have attained age 62
4. A money purchase plan may offer withdrawals if a participant has been a participant for 6 years

Reveal answer 67) All of the following describe benefits provided by ERISA covered plans, EXCEPT:

1. Retirement benefits based on age and/or service
2. Disability retirement benefits
3. Deferral of income past the end of employment
4. Medical benefits

Reveal answer 68) All of the following may affect the cost of benefits in a defined benefit plan, EXCEPT:

1. Contribution formula
2. Age of the employees
3. Years worked for the plan sponsor
4. Compensation of the employees

Reveal answer 69) All of the following documents should be kept indefinitely, EXCEPT:

1. Employee’s salary history
2. Employee’s hours history
3. Plan financial reports
4. Plan document

Reveal answer 70) Which of the following is/are receiving favorable tax treatment from a qualified plan? I. The sponsor II. The participants III. The trust

1. II only
2. III only
3. I and II only
4. I and III only

Reveal answer 71) All of the following statements regarding defined benefit plans are TRUE, EXCEPT:

1. After-tax employee contributions may be accepted however they are not considered part of the funding for the defined benefit
2. Mandatory employee contributions may occur in state-sponsored governmental plans and a portion of the defined benefit is funded by the mandatory employee contributions
3. Employer contributions typically fund all of the employees’ benefits
4. Investments that earn less than the assumed interest rate will cause the employer contribution to be less

Reveal answer 72) All of the following are employee documents that may be needed when an employer is adopting a new participant-directed 401(k) plan, EXCEPT:

1. Beneficiary designatio
2. Rollover request form
3. Salary reduction agreement
4. Investment elections

Reveal answer 73) All of the following are exempt from the 10% tax on early distributions, EXCEPT:

1. Amounts rolled over into another pla
2. Distributions due to death
3. Distributions before age 59½ for hardship
4. Distributions after age 55 and separation from service

Reveal answer 74) Which of the following is/are 401(k) hardship safe harbor standard needs requirements? I. The participant is not permitted to make elective contributions for at least six months following the date the hardship withdrawal is received. II. The participant must withdraw 10% more than the need to cover any incidental costs that may be incurred. III. The participant has obtained all nontaxable loans from all plans maintained by the employer prior to the hardship withdrawal (unless they increase the hardship).

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 75) Based on the following information, determine the amount of the fidelity bond necessary to satisfy the small plan audit waiver requirements: Profit sharing plan with 75 participants Total assets equal $4,000,000 Amount in qualifying assets equal $3,000,000

1. $ 400,000
2. $ 500,000
3. $1,000,000
4. $4,000,000

Reveal answer 76) All of the following describe types of benefits provided by welfare benefit plans, EXCEPT:

1. Scholarship funds
2. Vacation benefits
3. Retirement benefits
4. Prepaid legal services

Reveal answer 77) All of the following statements regarding QPSAs are TRUE, EXCEPT:

1. The plan may require the spouse to have been married to the participant for 18 months to be eligible for the benefit
2. The distribution to the spouse must be offered in the form of a QPSA unless the participant and spouse had elected a different form before the participant’s death
3. It is a series of periodic payments for the life of the surviving spouse of a participant who died before commencing payment of benefits
4. In a money purchase plan the benefit must be equal to an amount of at least 50% of the participant’s vested account balance

Reveal answer 78) All of the following are supporting documents that are needed when implementing a new plan for a corporation with 50 employees, EXCEPT:

1. Preparation of a resolution to adopt the pla
2. Preparation of a plan amendment
3. Preparation of a QDRO policy
4. Preparation of an SPD

Reveal answer 79) Which of the following statements regarding plan documents is/are TRUE? I. All plans using a master plan must invest their funds in a single master trust. II. An individually designed plan consists of the basic plan document and the adoption agreement. III. The volume submitter plan provides the greatest amount of design flexibility.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 80) Which of the following contribution amounts is/are designated to be contributed to the plan on the salary reduction election? I. Nonelective contribution. II. Pre-tax elective contribution. III. Designated Roth contribution.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 81) All of the following statements regarding ESOPs are TRUE, EXCEPT:

1. It may deduct dividends paid on shares contributed to the ESOP
2. Investment of plan assets in company stock automatically creates an ESOP
3. It may generate cash flow for the employer to finance its growth
4. The purchased shares represent the collateral on the ESOP loan if the ESOP has borrowed money to purchase company stock

Reveal answer 82) All of the following statements regarding cash balance plans are TRUE, EXCEPT:

1. The plan is required to offer an annuity form of benefit
2. The PBGC guarantees at least a portion of the participant’s benefits in the event of employer bankruptcy or other insolvency if PBGC covered
3. If the investment rate of return is lower than the guaranteed interest credit then the employer contribution is increased
4. The plan defines the guaranteed benefit in the form of a monthly benefit payable at normal retirement age

Reveal answer 83) All of the following steps must be taken by the plan administrator when a DRO is received, EXCEPT:

1. Notify the participant that no further allocations will be made to the participant account until the QDRO is paid out
2. Notify the participant of the receipt of the DRO
3. Notify the participant and alternate payee in writing whether the DRO is a QDRO
4. Notify the participant and alternate payee of the procedures for determining the DRO’s qualified status

Reveal answer 84) All of the following are distributable events for the participant, EXCEPT:

1. Retirement
2. Disability
3. Death
4. QDRO

Reveal answer 85) All of the following statements regarding the order of authority for guidance issued by the IRS are TRUE, EXCEPT:

1. Revenue Rulings have more authority than revenue procedures
2. Federal court decisions have more authority than state law
3. Laws enacted by Congress have more authority than IRS PLRs
4. Field Assistance Bulletins have more authority than Revenue Rulings

Reveal answer 86) Which of the following statements regarding the notice given under an automatic contribution arrangement is/are TRUE? I. It must be given to new participants a reasonable period of time before the pre-tax elective contribution initially begins. II. It must be given to all employees annually before each plan year. III. It must be given to explain the employer’s automatic profit sharing contribution that will be made by the employer at year end.

1. I only
2. II only
3. I and II only
4. II and III only

Reveal answer 87) Which of the following is/are provided to enroll a new participant in a 401(k) plan? I. Salary reduction election II. Summary plan description III. Corporate resolution adopting the pla

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 88) All of the following incidents are 401(k) hardship safe harbor withdrawal events, EXCEPT:

1. To prevent eviction of the participant from the participant’s principal residence
2. Tuition for the participant’s child’s doctorate program
3. Medical expenses for the participant’s spouse
4. Expenditures necessary to acquire a second home

Reveal answer 89) All of the following are retirement benefit formulas for a defined benefit plan, EXCEPT:

1. Offset formula
2. Excess formula
3. Flat percentage of compensation formula
4. Unit credit formula

Reveal answer 90) Based on the following information, determine the vested portion of the participant’s account: The plan is a money purchase pension plan that does not allow for rollover or after-tax employee contributions. The participant’s account balance is $40,000. The participant is 40% vested.

1. $1,600
2. $10,000
3. $16,000
4. $24,000

Reveal answer 91) All of the following are disclosures that must be provided to participants of a safe harbor 401(k) plan with automatic enrollment, EXCEPT:

1. SAR
2. Participant statements
3. Bylaws
4. Safe harbor notice

Reveal answer 92) Which of the following is/are included in a loan policy? I. Procedure for paying off a loan early II. Steps that must be taken to preserve plan assets in the event of loan default III. Name of each participant that has an outstanding loa

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 93) Which of the following is/are employee data records that need to be kept? I. Those records that help determine the benefits due II. Just those records for participating employees in a 401(k) plan III. Records for all employees, not just those eligible, in a profit sharing pla

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 94) All of the following are safe harbor electronic media storage requirements EXCEPT:

1. The system provides that after documents are electronically stored all paper copies are maintained for another 3 years
2. The system is capable of retaining the records
3. The system may convert the electronic documents into legible paper copies
4. The system does not require participant to sign on at a particular site in order to access the records

Reveal answer 95) Which of the following statements regarding restrictions that may be imposed on hardship withdrawals for plans that are not 401(k) types is/are TRUE? I. The type of money available for a hardship withdrawal may be limited. II. Pension plans only allow hardship withdrawals if the participant has reached NRA or attained age 62. III. The plan must define the financial circumstances that constitute a hardship event.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 96) Which of the following statements regarding rolling over assets into another qualified plan is/are TRUE? I. A designated Roth 401(k) that includes amounts that are not taxable can be rolled to another 401(k) plan that allows designated Roth accounts if a direct rollover occurs. II. After a rollover occurs it is subject to the rules and regulations of that plan. III. The plan and SPD will specify whether or not rollover contributions are allowed.

1. II only
2. III only
3. I and II only
4. I and III only

Reveal answer 97) Which of the following statements regarding defined contribution and defined benefit plans is/are TRUE? I. Both types promise to pay a specific benefit at normal retirement age. II. The participant bears the risk for the investment results for both types. III. ERISA defines both types of plans as pension benefit plans that provide retirement benefits.

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 98) All of the following statements regarding the electronic disclosure of information to participants are TRUE, EXCEPT:

1. The plan administrator must confirm that documents delivered electronically have been received
2. All documents transmitted electronically must be protected with password sensitive encryption
3. Participant confidentiality must be protected
4. A notice of the significance of the document being transmitted electronically must be provided

Reveal answer 99) Which of the following statements regarding parent-subsidiary controlled groups is/are TRUE? I. There are two or more organizations that have a service relationship and an ownership relationship. II. It may include more than one subsidiary if the first subsidiary owns 80 percent or more of one or more separate employers. III. It exists when one business (called the parent) owns at least 80% of one or more other businesses (the subsidiaries).

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 100) Based on the following information, determine the amount of the fidelity bond: Profit sharing plan with 200 participants Total assets equal $10,850,000 There are no assets invested in employer stock

1. $1,000
2. $18,500
3. $185,000
4. $500,000

Reveal answer 101) All of the following statements regarding safe harbor electronic document record retention requirements are TRUE, EXCEPT:

1. The recordkeeping system must be capable of reproducing the electronic record
2. The recordkeeping system must allow for ready access of the records at reasonable times
3. The recordkeeping system must be capable of preserving the electronic records
4. A designated time and method to archive must be in place

Reveal answer 102) All of the following statements regarding the definition of retirement found in a plan document are TRUE, EXCEPT:

1. A plan may define NRA as the attainment of age 73
2. Eligibility provisions for early retirement may include specific age and/or service requirements
3. In general, under a pension benefit plan a participant must separate from service to obtain early retirement benefits
4. Late retirement occurs when a participant elects to retire later than the plan’s NRA

Reveal answer 103) All of the following statements regarding plan service providers are TRUE, EXCEPT:

1. The ERPA may represent the client on issues related to the entity’s tax filing
2. The enrolled actuary may determine the minimum and maximum contribution for a defined benefit plan
3. The investment consultant may provide investment advice to plan participants
4. The attorney may interpret the retirement plan provisions of the IRC

Reveal answer 104) All of the following statements regarding Form 5500 are TRUE, EXCEPT:

1. Generally, it is due seven months after the end of the plan year
2. The Form 5500 to be filed relates to the year in which the plan year ends
3. Generally, a small plan filer is one that has fewer than 100 participants at the beginning of the plan year
4. The IRS and the DOL share the information on Form 5500

Reveal answer 105) All of the following are employee benefit plans, EXCEPT:

1. Welfare benefit plans
2. Pension benefit plans
3. Plans maintained solely to comply with worker’s compensation laws
4. Plans covered by ERISA

Reveal answer 106) Which of the following statements regarding IRAs is/are TRUE? I. The traditional IRA allows certain individuals to contribute the lesser of $5,500 for 2014 or 100% of compensation. II. The employer will set up the traditional IRA and the Roth IRA for the employees. III. A Roth IRA allows an individual to contribute nondeductible contributions to the IRA.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 107) Which of the following statements regarding distributions is/are TRUE? I. A distribution from a designated Roth account that occurs when a participant is age 60 and contributions have been in the account for ten years is not taxable. II. A distribution from a designated Roth account that occurs when a participant is age 30 and contributions have been in the account for two years of service will result in taxable earnings. III. A distribution from a profit sharing account that occurs when a participant is age 45 and contributions have been in the account for two years of service will result in taxable earnings and contributions.

1. II only
2. III only
3. I and II only
4. I and III only

Reveal answer 108) All of the following are normal forms of benefit payment from a defined benefit plan, EXCEPT:

1. Life only annuity
2. Lump sum
3. Joint and survivor annuity
4. Life annuity with ten years certai

Reveal answer 109) All of the following must clearly be described in a loan program, in a manner understandable to the average plan participant, EXCEPT:

1. The method by which a participant may obtain a determination letter for the pla
2. The basis on which loans are approved or denied
3. Limitations, if any, on the number of loans allowed
4. The type of collateral that may be used to secure the loa

Reveal answer 110) Which of the following statements regarding determining the interest rate for a loan is/are TRUE? I. The IRC and ERISA do not specifically contain a safe harbor method for determining a reasonable rate of interest. II. The interest rate may be defined in the loan policy to be a specific fixed rate such as 8%, which will be the same percent for all loans. III. The interest rate on a loan issued to a participant on military leave may be reduced to 6% during the period of military service.

1. II only
2. III only
3. I and II only
4. I and III only

Reveal answer 111) Which of the following is/are included in a loan policy? I. Application procedures II. Procedure for determine a reasonable rate of interest III. Identity of the person or position administering the loan program

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 112) Which of the following is/are benefits of sponsoring a qualified plan? I. Interest income on funds within the plan’s trust are tax-exempt. II. Distributions from the plan are made tax-free. III. Benefits under the plan typically accumulate on a tax-deferred basis.

1. II only
2. III only
3. I and II only
4. I and III only

Reveal answer 113) Which of the following is/are employee data records that must be kept? I. Information needed to determine vested terminated participant’s amount of benefits II. Information needed to determine vested terminated participant’s entitlement to a benefit III. Information needed to determine active participant’s amount of benefits

1. II only
2. III only
3. I and II only
4. II and III only

Reveal answer 114) All of the following statements regarding 457 plans are TRUE, EXCEPT:

1. They are a qualified plans
2. They do not need to comply with top-heavy rules
3. They may be sponsored by a State
4. They may be sponsored by a tax-exempt organization

Reveal answer 115) All of the following entities may sponsor a retirement plan, EXCEPT:

1. Trusts
2. Local governments
3. Corporations
4. Sole proprietorships

Reveal answer 116) All of the following are important provisions of the plan document,, EXCEPT:

1. Vesting
2. Allocations or benefits
3. Top-heavy
4. Normal Retirement

Reveal answer 117) All of the following may be provided to new employees upon their becoming eligible to participate in a participant-directed investment 401(k) plan using a QDIA, EXCEPT:

1. Beneficiary designation electio
2. Tax withholding informatio
3. Investment direction electio
4. Salary reduction agreement

Reveal answer 118) All of the following are methods that may be used to provide information to participants, EXCEPT:

1. Hand delivery
2. First class mail
3. Inclusion in a regularly provided newsletter
4. Posting on a workplace bulletin board

Reveal answer 119) All of the following may be found on participant statements, EXCEPT:

1. Vested account balance
2. Contributions allocated
3. An explanation of any permitted disparity
4. An explanation of any floor-offset arrangement

Reveal answer 120) Which of the following statements regarding the potential consequences of plan disqualification is/are TRUE? I. Participant loans may have to be repaid. II. Participants may have to include vested benefits in their gross income. III. Tax-free rollovers may be disallowed.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 121) All of the following statements regarding defined contribution plans are TRUE, EXCEPT:

1. A separate account is maintained for each participant
2. The participant bears the investment risk
3. The participant’s total benefit equals the accumulated value of the participant’s account at retirement
4. Investment results are not guaranteed

Reveal answer 122) All of the following must be specified in the plan document for a plan to be qualified, EXCEPT:

1. The limit on the amount of compensation that can be taken into account for determining contributions
2. A limit on the level of contributions to a participant
3. Plan must not discriminate against lower-paid employees
4. Benefits earned by a participant may not be assigned

Reveal answer 123) All of the following describe distributable events that may be eligible for a rollover distribution, EXCEPT:

1. Termination of employment
2. Attainment of age 59½
3. Attainment of NRA
4. Disability

Reveal answer 124) Which of the following statements regarding employees is/are TRUE? I. An independent contractor is considered an employee of the plan sponsor for qualified plan purposes. II. An individual employed by the plan sponsor and considered a common law employee is an employee for qualified plan purposes. III. A leased employee not covered by a safe harbor plan may be considered an employee of the recipient if certain conditions are met.

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 125) All of the following may be corrected under EPCRS, EXCEPT:

1. Plan document failures
2. Operational defects
3. Demographic issues
4. Ineligible employer defects

Reveal answer 126) Which of the following is/are years of service that may be excluded in the computation of vesting? I. Years of service earned prior to age 18. II. Years of service earned prior to the inception date of the plan. III. Years of service prior to date of participation.

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 127) Based on the following information, determine the maximum deductible contribution to the profit sharing plan: Total compensation for all eligible participants is $500,000. The profit sharing plan is the only retirement plan sponsored by the employer. No one exceeds the IRC §401(a)(17) compensation limit.

1. $0
2. $50,000
3. $75,000
4. $125,000

Reveal answer 128) All of the following statements regarding defined contribution plans are TRUE, EXCEPT:

1. Investment results do not affect the employer’s cost
2. There is no promised benefit to be paid to the participant
3. The employer’s defined contributions are the extent of the employer’s commitment to the participant’s retirement income
4. The benefit to be paid is generally expressed as an annuity

Reveal answer 129) All of the following are vesting schedules that may be used in a defined benefit plan, EXCEPT:

1. 100% immediate
2. Three-year cliff
3. Seven-year graded
4. Five-year cliff

Reveal answer 130) All of the following may be alternate payees, EXCEPT:

1. Brother who is not a dependent
2. Daughter
3. So
4. Former Spouse

Reveal answer 131) All of the following statements regarding amending a qualified plan are TRUE, EXCEPT:

1. The plan document must contain a written procedure for amending the plan
2. Discretionary amendments must be adopted by the first day of the plan year it is to be effective
3. Discretionary amendments represent the plan sponsor’s ability to tailor the plan to meet the plan sponsor’s intended purpose
4. An amendment cannot eliminate benefits or rights that have already accrued

Reveal answer 132) Which of the following statements regarding cash balance plans is/are TRUE? I. The sum of the contributions and interest credits at any period of time are referred to as a theoretical account balance. II. An actuary must certify the contribution requirements. III. The employer bears the risk of investment.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 133) All of the following standards must be met by a recordkeeping system utilizin the safe harbor method for storage of records on electronic media, EXCEPT:

1. Have reasonable controls to ensure accuracy
2. Be convertible to paper copies
3. Be capable of retrieving the information
4. Be capable of indexing

Reveal answer 134) Which of the following statements regarding the normal form of benefit payment in a defined benefit plan is/are TRUE? I. A life annuity with ten years certain pays a monthly benefit to the participant for life then guarantees payment to the spouse for ten additional years. II. A life annuity provides for monthly payment of benefits for the lifetime of the participant. III. A joint and survivor annuity pays a monthly benefit over the life of the participant and ceases upon the participant death.

1. I only
2. II only
3. I and III only
4. II and III only

Reveal answer 135) Which of the following is/are compensation definitions used to determine a participant’s benefit under a defined benefit plan? I. Compensation earned during the month prior to retirement. II. Compensation earned during the participant’s working lifetime with the employer. III. An average of compensation earned by the participant over a specified period.

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 136) Based on the following information, determine the maximum deductible contribution to the 401(k) plan for 2014: Total gross compensation for the 100% owner is $300,000. Total gross compensation for all eligible employees is $650,000. The 401(k) plan is the only plan sponsored by the employer. The employees have made pre-tax elective contributions of $75,000. The compensation limit for 2014 is $260,000.

1. $162,500
2. $227,500
3. $237,500
4. $260,000

Reveal answer 137) Which of the following statements regarding the enforcement of laws affecting retirement plans is/are TRUE? I. IRS enforces Title 1 of ERISA rules that relate to participation, funding and vesting. II. DOL enforces Title 1 of ERISA rules that relate to reporting, disclosure and standards of conduct. III. PBGC enforces Title 1 of ERISA rules that relate to crediting or accrual of benefits and the method and payment of benefits.

1. I only
2. III only
3. I and II only
4. II and III only

Reveal answer 138) All of the following are considered fiduciaries, EXCEPT:

1. A paid investment consultant who renders advice regarding plan funds
2. A trustee who has discretionary authority to sell assets
3. A spouse of a participant
4. A plan administrator who is named in the plan document

Reveal answer 139) All of the following statements regarding plan audits by an independent public accountant are TRUE, EXCEPT:

1. Plans that cover 100 or more participants are typically required to include a plan audit report with their Form 5500 series filing
2. A plan audit must provide an opinion as to whether the plan design meets the overall objective of the plan sponsors
3. Plans that have fewer than 100 participants and file a Schedule H are required to file a plan audit report with their Form 5500 series filing
4. A plan audit may address whether plan assets have been fairly valued

Reveal answer

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