RPA 1 - Final Exam Questions
|\ |\ |\ |\ |\ |\
with answers |\
Top-hat plan - CORRECT ANSWERS ✔✔A retirement plan
|\ |\ |\ |\ |\ |\ |\ |\
that is unfunded and maintained by an employer
|\ |\ |\ |\ |\ |\ |\ |\
primarily for the purpose of providing deferred
|\ |\ |\ |\ |\ |\ |\
compensation for a "select group of management or |\ |\ |\ |\ |\ |\ |\ |\
highly compensated employees" is called a (n):
|\ |\ |\ |\ |\ |\
Must be given the election to remain under the pre-
|\ |\ |\ |\ |\ |\ |\ |\ |\
amendment vesting schedule for both pre-and post- |\ |\ |\ |\ |\ |\
amendment benefit accruals. - CORRECT ANSWERS ✔✔An |\ |\ |\ |\ |\ |\
employee with four years of service participates in a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
retirement plan. The vesting schedule in this plan is
|\ |\ |\ |\ |\ |\ |\ |\ |\
changed by plan amendment. Under tax law, this plan
|\ |\ |\ |\ |\ |\ |\ |\ |\
participant:
An example of a sponsor of a 403(b) plan is - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔public college |\ |\
Contributions to a profit sharing plan must be made on - |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔A substantial and reoccurring
|\ |\ |\ |\ |\ |\
basis
,Employees withdrawing contributions from a savings |\ |\ |\ |\ |\ |\
incentive match plan for employees (SIMPLE plan)|\ |\ |\ |\ |\ |\ |\
individual retirement account (IRA) during the two-year
|\ |\ |\ |\ |\ |\ |\
period beginning on the date of initial participation are
|\ |\ |\ |\ |\ |\ |\ |\ |\
subject to a penalty tax of - CORRECT ANSWERS ✔✔25
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
percent
Federal law defines normal retirement age to be the age
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
specified in the plan, but it cannot occur beyond the later
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of - CORRECT ANSWERS ✔✔Age 65 or the fifth
|\ |\ |\ |\ |\ |\ |\ |\ |\
anniversary of the participant's date of initial participation |\ |\ |\ |\ |\ |\ |\
For a distribution from a Roth IRA account to receive
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
favorable tax treatment as a qualified distribution, how
|\ |\ |\ |\ |\ |\ |\ |\
long must contributions be in the account? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔5 years |\ |\
For all defined contribution plans, there is a uniform
|\ |\ |\ |\ |\ |\ |\ |\ |\
employer deduction limit of - CORRECT ANSWERS ✔✔25% |\ |\ |\ |\ |\ |\ |\
of compsensation
|\ |\
How did the Pension Protection Act of 2006 change
|\ |\ |\ |\ |\ |\ |\ |\ |\
requirements for investment advice provided to individual |\ |\ |\ |\ |\ |\
retirement account (IRA) owners? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔The Act requires that fees for such advice not be
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contingent on the investment option chosen. |\ |\ |\ |\ |\
, If a contribution to a profit sharing plan exceeds the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
maximum deductible contribution limit, the employer can
|\ |\ |\ |\ |\ |\ |\
carryover the excess contribution to the succeeding year,
|\ |\ |\ |\ |\ |\ |\ |\
but will be subject to an excise tax on the excess
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contribution of: - CORRECT ANSWERS ✔✔10 percent |\ |\ |\ |\ |\ |\
If you knew that a vendor servicing a 401(k) plan was
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
clearing trades internally and not using an outside
|\ |\ |\ |\ |\ |\ |\ |\
directed trustee, you generally could conclude that: -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔The vendor was providing plan
|\ |\ |\ |\ |\ |\ |\
services as a bundled service provider.
|\ |\ |\ |\ |\
In 1948 the National Labor Relations Board (NLRB) found
|\ |\ |\ |\ |\ |\ |\ |\ |\
that the provisions of retirement plans affect conditions of
|\ |\ |\ |\ |\ |\ |\ |\
employment and that retirement benefits constitute: -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Wages |\ |\
In addition to current income taxation, any excess
|\ |\ |\ |\ |\ |\ |\ |\
contribution to an individual retirement account (IRA) is |\ |\ |\ |\ |\ |\ |\ |\
subject to a nondeductible excise tax of: - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔6 percent |\ |\
n general, the aggregate amount of employer
|\ |\ |\ |\ |\ |\ |\
contribution allocated to a younger employee under a |\ |\ |\ |\ |\ |\ |\ |\
defined contribution plan compared to that under a
|\ |\ |\ |\ |\ |\ |\ |\
defined benefit plan is: - CORRECT ANSWERS ✔✔A higher
|\ |\ |\ |\ |\ |\ |\ |\ |\
amount
|\ |\ |\ |\ |\ |\
with answers |\
Top-hat plan - CORRECT ANSWERS ✔✔A retirement plan
|\ |\ |\ |\ |\ |\ |\ |\
that is unfunded and maintained by an employer
|\ |\ |\ |\ |\ |\ |\ |\
primarily for the purpose of providing deferred
|\ |\ |\ |\ |\ |\ |\
compensation for a "select group of management or |\ |\ |\ |\ |\ |\ |\ |\
highly compensated employees" is called a (n):
|\ |\ |\ |\ |\ |\
Must be given the election to remain under the pre-
|\ |\ |\ |\ |\ |\ |\ |\ |\
amendment vesting schedule for both pre-and post- |\ |\ |\ |\ |\ |\
amendment benefit accruals. - CORRECT ANSWERS ✔✔An |\ |\ |\ |\ |\ |\
employee with four years of service participates in a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
retirement plan. The vesting schedule in this plan is
|\ |\ |\ |\ |\ |\ |\ |\ |\
changed by plan amendment. Under tax law, this plan
|\ |\ |\ |\ |\ |\ |\ |\ |\
participant:
An example of a sponsor of a 403(b) plan is - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔public college |\ |\
Contributions to a profit sharing plan must be made on - |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔A substantial and reoccurring
|\ |\ |\ |\ |\ |\
basis
,Employees withdrawing contributions from a savings |\ |\ |\ |\ |\ |\
incentive match plan for employees (SIMPLE plan)|\ |\ |\ |\ |\ |\ |\
individual retirement account (IRA) during the two-year
|\ |\ |\ |\ |\ |\ |\
period beginning on the date of initial participation are
|\ |\ |\ |\ |\ |\ |\ |\ |\
subject to a penalty tax of - CORRECT ANSWERS ✔✔25
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
percent
Federal law defines normal retirement age to be the age
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
specified in the plan, but it cannot occur beyond the later
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of - CORRECT ANSWERS ✔✔Age 65 or the fifth
|\ |\ |\ |\ |\ |\ |\ |\ |\
anniversary of the participant's date of initial participation |\ |\ |\ |\ |\ |\ |\
For a distribution from a Roth IRA account to receive
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
favorable tax treatment as a qualified distribution, how
|\ |\ |\ |\ |\ |\ |\ |\
long must contributions be in the account? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔5 years |\ |\
For all defined contribution plans, there is a uniform
|\ |\ |\ |\ |\ |\ |\ |\ |\
employer deduction limit of - CORRECT ANSWERS ✔✔25% |\ |\ |\ |\ |\ |\ |\
of compsensation
|\ |\
How did the Pension Protection Act of 2006 change
|\ |\ |\ |\ |\ |\ |\ |\ |\
requirements for investment advice provided to individual |\ |\ |\ |\ |\ |\
retirement account (IRA) owners? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔The Act requires that fees for such advice not be
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contingent on the investment option chosen. |\ |\ |\ |\ |\
, If a contribution to a profit sharing plan exceeds the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
maximum deductible contribution limit, the employer can
|\ |\ |\ |\ |\ |\ |\
carryover the excess contribution to the succeeding year,
|\ |\ |\ |\ |\ |\ |\ |\
but will be subject to an excise tax on the excess
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contribution of: - CORRECT ANSWERS ✔✔10 percent |\ |\ |\ |\ |\ |\
If you knew that a vendor servicing a 401(k) plan was
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
clearing trades internally and not using an outside
|\ |\ |\ |\ |\ |\ |\ |\
directed trustee, you generally could conclude that: -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔The vendor was providing plan
|\ |\ |\ |\ |\ |\ |\
services as a bundled service provider.
|\ |\ |\ |\ |\
In 1948 the National Labor Relations Board (NLRB) found
|\ |\ |\ |\ |\ |\ |\ |\ |\
that the provisions of retirement plans affect conditions of
|\ |\ |\ |\ |\ |\ |\ |\
employment and that retirement benefits constitute: -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Wages |\ |\
In addition to current income taxation, any excess
|\ |\ |\ |\ |\ |\ |\ |\
contribution to an individual retirement account (IRA) is |\ |\ |\ |\ |\ |\ |\ |\
subject to a nondeductible excise tax of: - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔6 percent |\ |\
n general, the aggregate amount of employer
|\ |\ |\ |\ |\ |\ |\
contribution allocated to a younger employee under a |\ |\ |\ |\ |\ |\ |\ |\
defined contribution plan compared to that under a
|\ |\ |\ |\ |\ |\ |\ |\
defined benefit plan is: - CORRECT ANSWERS ✔✔A higher
|\ |\ |\ |\ |\ |\ |\ |\ |\
amount
