CPFA License Exam Certified Plan Fiduciary
Actual Exam Newest 2026-2027 With Complete
Questions And Correct Detailed Answers| Brand
New Version!
Larry is the owner of DEF Company. Which of Larry's activities is
considered a fiduciary function?
a. Establishes a 401(k) plan for his company.
b. Determines the plan's employer matching contribution formula.
c. Hires the plan's investment advisor.
d. Decides to terminate the 401(k) plan. - CORRECT ANSWER-c. Hires
the plan's investment advisor.
All of the following documents should be maintained to show fiduciary
best practices, EXCEPT:
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,a. Current fee benchmarking report for administration services
b. Documentation of selection process for new payroll vendor
c. Copies of retirement plan committee meeting minutes
d. Copies of retirement plan committee agendas - CORRECT ANSWER-b.
Documentation of selection process for new payroll vendor
All of the following documents are updated annually, EXCEPT:
a. 404(a)(5) participant fee disclosure
b. Plan document
c. Qualified default investment alternative notice
d. Safe Harbor Matching 401(k) notices - CORRECT ANSWER-b. Plan
document
All of the following are consequences of fiduciary breaches, EXCEPT:
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,a. A fiduciary should make good on any losses caused by his or her
fiduciary breach.
b. A fiduciary should restore any profits to the plan that had resulted
due to his or her fiduciary breach.
c. The corporate veil protects fiduciaries from personal liability.
d. A fiduciary who has committed a breach may be removed and
prohibited against serving as a fiduciary in the future. - CORRECT
ANSWER-c. The corporate veil protects fiduciaries from personal
liability.
All of the following are best practices for determining the
reasonableness of plan fees, EXCEPT:
a. Determine whether each individual expense is reasonable.
b. Research revenue sharing arrangements to determine the underlying
cost of services.
c. Determine whether any expenses paid to fiduciaries have violated the
conflict of interest rules.
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, d. Owner-driven plans are not required to determine the
reasonableness of plan fees due to their limited personnel and financial
resources. - CORRECT ANSWER-d. Owner-driven plans are not required
to determine the reasonableness of plan fees due to their limited
personnel and financial resources.
All of the following fees may be paid from the plan, EXCEPT:
a. TPA fee for Form 5500 preparation
b. Fee associated with union negotiations regarding retirement plan
benefits
c. Recordkeeper fee for maintaining participant accounts
d. Investment advisory fee - CORRECT ANSWER-b. Fee associated with
union negotiations regarding retirement plan benefits
All of the following are parties-in-interest to the STU, Inc. Profit Sharing
Plan, EXCEPT:
a. Brian, who is a plan participant and the president's brother
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Actual Exam Newest 2026-2027 With Complete
Questions And Correct Detailed Answers| Brand
New Version!
Larry is the owner of DEF Company. Which of Larry's activities is
considered a fiduciary function?
a. Establishes a 401(k) plan for his company.
b. Determines the plan's employer matching contribution formula.
c. Hires the plan's investment advisor.
d. Decides to terminate the 401(k) plan. - CORRECT ANSWER-c. Hires
the plan's investment advisor.
All of the following documents should be maintained to show fiduciary
best practices, EXCEPT:
1|Page
,a. Current fee benchmarking report for administration services
b. Documentation of selection process for new payroll vendor
c. Copies of retirement plan committee meeting minutes
d. Copies of retirement plan committee agendas - CORRECT ANSWER-b.
Documentation of selection process for new payroll vendor
All of the following documents are updated annually, EXCEPT:
a. 404(a)(5) participant fee disclosure
b. Plan document
c. Qualified default investment alternative notice
d. Safe Harbor Matching 401(k) notices - CORRECT ANSWER-b. Plan
document
All of the following are consequences of fiduciary breaches, EXCEPT:
2|Page
,a. A fiduciary should make good on any losses caused by his or her
fiduciary breach.
b. A fiduciary should restore any profits to the plan that had resulted
due to his or her fiduciary breach.
c. The corporate veil protects fiduciaries from personal liability.
d. A fiduciary who has committed a breach may be removed and
prohibited against serving as a fiduciary in the future. - CORRECT
ANSWER-c. The corporate veil protects fiduciaries from personal
liability.
All of the following are best practices for determining the
reasonableness of plan fees, EXCEPT:
a. Determine whether each individual expense is reasonable.
b. Research revenue sharing arrangements to determine the underlying
cost of services.
c. Determine whether any expenses paid to fiduciaries have violated the
conflict of interest rules.
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, d. Owner-driven plans are not required to determine the
reasonableness of plan fees due to their limited personnel and financial
resources. - CORRECT ANSWER-d. Owner-driven plans are not required
to determine the reasonableness of plan fees due to their limited
personnel and financial resources.
All of the following fees may be paid from the plan, EXCEPT:
a. TPA fee for Form 5500 preparation
b. Fee associated with union negotiations regarding retirement plan
benefits
c. Recordkeeper fee for maintaining participant accounts
d. Investment advisory fee - CORRECT ANSWER-b. Fee associated with
union negotiations regarding retirement plan benefits
All of the following are parties-in-interest to the STU, Inc. Profit Sharing
Plan, EXCEPT:
a. Brian, who is a plan participant and the president's brother
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