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CPFA License Exam Certified Plan Fiduciary Actual
Verified Exam Newest With Complete Questions And
Correct Detailed Answers|| Newest Exam!!!
A partnership is a business that:
A) Cannot have a limited liability structure.
B) Has at least two partners.
C) Is typically run by a board of directors.
D) Reports income on form 1120. - Answer-B) Has at least
two partners.
All of the following describe the impact of a business's
cash flow and budget when establishing a plan, EXCEPT:
A) A plan advisor should inform the employer that required
contributions will be waived for any year that the company
does not make a profit.
B) A plan advisor should explain a plan's contribution
commitment to the employer.
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C) Employers should have a stable cash flow if they are
considering adopting a Defined Benefit/Defined
Contribution combination plan.
D) A plan advisor may work with the service provider to
show estimates of what employer contributions would be
under different contribution formulas. - Answer-A) A plan
advisor should inform the employer that required
contributions will be waived for any year that the company
does not make a profit.
Which of the following reports can be used in measuring
plan effectiveness and participant outcomes?
A) Number of terminated participants who elected to roll
their accounts into IRAs.
B) Average deferral rate of participants in the plan.
C) Independent accountant's required annual audit of the
plan.
D) Summary Annual Report. - Answer-B) Average deferral
rate of participants in the plan.
All of the following are benefits of participant retirement
readiness, EXCEPT:
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A) Employers can better manage their workforce needs.
B) Participants receive a guarantee of lifetime income
payments.
C) Employees may be more satisfied with their jobs when
working for an employer that actively promotes retirement
readiness programs.
D) Employers can work with service providers who have
tools to assist participants in increasing retirement
savings. - Answer-B) Participants receive a guarantee of
lifetime income payments.
All of following are items to consider when developing a
strategy to promote successful participant outcomes,
EXCEPT:
A) What is the average life expectancy for the participants'
beneficiaries?
B) Should investment advice be offered?
C) Is senior level management interested in promoting
"retirement readiness"?
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D) What type of participant education should be provided?
- Answer-A) What is the average life expectancy for the
participants' beneficiaries?
All of the following statements describe the re-enrollment
process of reinvesting participant accounts in the plan's
asset allocation funds, EXCEPT:
A) The re-enrollment of participant accounts is considered
a behavioral finance method.
B) Participants are given the opportunity to "opt-out" of the
re-enrollment of their account balances.
C) The goal of the re-enrollment process is to improve
participant outcomes by automatically investing their
account balances in asset allocation funds appropriate for
their age.
D) Participant notices are not required. - Answer-D)
Participant notices are not required.
Which statement regarding IRA plans and 401k plans is
TRUE?
CPFA License Exam Certified Plan Fiduciary Actual
Verified Exam Newest With Complete Questions And
Correct Detailed Answers|| Newest Exam!!!
A partnership is a business that:
A) Cannot have a limited liability structure.
B) Has at least two partners.
C) Is typically run by a board of directors.
D) Reports income on form 1120. - Answer-B) Has at least
two partners.
All of the following describe the impact of a business's
cash flow and budget when establishing a plan, EXCEPT:
A) A plan advisor should inform the employer that required
contributions will be waived for any year that the company
does not make a profit.
B) A plan advisor should explain a plan's contribution
commitment to the employer.
,2|Page
C) Employers should have a stable cash flow if they are
considering adopting a Defined Benefit/Defined
Contribution combination plan.
D) A plan advisor may work with the service provider to
show estimates of what employer contributions would be
under different contribution formulas. - Answer-A) A plan
advisor should inform the employer that required
contributions will be waived for any year that the company
does not make a profit.
Which of the following reports can be used in measuring
plan effectiveness and participant outcomes?
A) Number of terminated participants who elected to roll
their accounts into IRAs.
B) Average deferral rate of participants in the plan.
C) Independent accountant's required annual audit of the
plan.
D) Summary Annual Report. - Answer-B) Average deferral
rate of participants in the plan.
All of the following are benefits of participant retirement
readiness, EXCEPT:
,3|Page
A) Employers can better manage their workforce needs.
B) Participants receive a guarantee of lifetime income
payments.
C) Employees may be more satisfied with their jobs when
working for an employer that actively promotes retirement
readiness programs.
D) Employers can work with service providers who have
tools to assist participants in increasing retirement
savings. - Answer-B) Participants receive a guarantee of
lifetime income payments.
All of following are items to consider when developing a
strategy to promote successful participant outcomes,
EXCEPT:
A) What is the average life expectancy for the participants'
beneficiaries?
B) Should investment advice be offered?
C) Is senior level management interested in promoting
"retirement readiness"?
, 4|Page
D) What type of participant education should be provided?
- Answer-A) What is the average life expectancy for the
participants' beneficiaries?
All of the following statements describe the re-enrollment
process of reinvesting participant accounts in the plan's
asset allocation funds, EXCEPT:
A) The re-enrollment of participant accounts is considered
a behavioral finance method.
B) Participants are given the opportunity to "opt-out" of the
re-enrollment of their account balances.
C) The goal of the re-enrollment process is to improve
participant outcomes by automatically investing their
account balances in asset allocation funds appropriate for
their age.
D) Participant notices are not required. - Answer-D)
Participant notices are not required.
Which statement regarding IRA plans and 401k plans is
TRUE?
