QKA - 1 Vesting - Resource Guide Verified
Multiple Choice and Conceptual Actual
Frequently Tested Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. Vesting refers to the - ANSWER ownership that a participant has in his
or her account balance or accrued benefit.
2. The vested interest is the portion of a participant's benefit that
______________. As a result, when the participant terminates employment
or otherwise becomes eligible for a distribution from the plan, the vested
portion is the________________ - ANSWER cannot be taken away
amount that is payable to him or her.
3. Immediate, or 100 percent, vesting means that the participant has
_______________ - ANSWER full ownership in any such contributions
(including earnings on such contributions) without regard to length of
service.
4. The portion of a participant's account balance or accrued benefit that is not
vested is the _____________ of the benefit. When a participant loses his or
her interest in the forfeitable portion of the benefit, that portion (then
called a forfeiture) may be used to _______________________ - ANSWER
forfeitable portion
,5. pay plan expenses, to offset employer contributions, or as an allocation to
other participants to increase the benefits they receive under the plan.
6. Each plan must designate a vesting schedule, which is a schedule that
___________________________________ - ANSWER outlines how
participants will vest in their ac-count balance or accrued benefits.
7. A vesting schedule defines the percent of
the______________________________. - ANSWER total account
balance or accrued benefit that belongs to the participant at any given
point in time and is based upon a participant's years of service
8. The vested percentage is multiplied by the
_____________________________________to determine the amount of
the participant's vested interest. The law provides minimum standards for a
plan's vesting schedule. - ANSWER participant's account balance or
accrued benefit
9. A defined contribution plan may satisfy the legal vesting requirements for
employer contributions under one of two statutory minimum schedules:
- - ANSWER • 3-year cliff vesting; or
• 6-year graded vesting.
10. Under 3-year cliff vesting, the employee becomes 100% vested once he or
she is credited with _______________. Prior to his or her completion of the
third year of service, the employee's vesting percentage is _________ This
schedule is known as ____________ because the employee will jump from
, no vesting to 100% vesting once he or she completes the third year of
service. - ANSWER three years of service
zero
cliff vesting
11. 3 year cliff vesting percentages - ANSWER Years of Service
Vesting Percent
1
0%
2
0%
3
100%
13. 6 Year graded vesting percentages - ANSWER Years of Service
Vesting Percent
1
0%
2
20%
3
40%
, 4
60%
6
80%
6
100%
12. Under six-year graded vesting, an employee becomes 100 percent vested
once he or she is credited with at ___________________. Because 100
percent vesting can be delayed longer under this option, the law requires
that a __________________apply to earlier years. - ANSWER least six
years of service
minimum vesting percentage
13. Some plans avoid the issue of vesting schedules by simply providing that all
participants are _____________ vested in all accrued benefits at all times.
These plans are known as________________ plans. An immediate vesting
approach would always satisfy the ________________ - ANSWER 100
percent
immediate vesting
minimum vesting schedules.
14. If a plan requires more than one year of service for eligibility purposes, the
_________________. When a plan uses immediate vesting, the need to
keep track of service for vesting purposes is
Multiple Choice and Conceptual Actual
Frequently Tested Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. Vesting refers to the - ANSWER ownership that a participant has in his
or her account balance or accrued benefit.
2. The vested interest is the portion of a participant's benefit that
______________. As a result, when the participant terminates employment
or otherwise becomes eligible for a distribution from the plan, the vested
portion is the________________ - ANSWER cannot be taken away
amount that is payable to him or her.
3. Immediate, or 100 percent, vesting means that the participant has
_______________ - ANSWER full ownership in any such contributions
(including earnings on such contributions) without regard to length of
service.
4. The portion of a participant's account balance or accrued benefit that is not
vested is the _____________ of the benefit. When a participant loses his or
her interest in the forfeitable portion of the benefit, that portion (then
called a forfeiture) may be used to _______________________ - ANSWER
forfeitable portion
,5. pay plan expenses, to offset employer contributions, or as an allocation to
other participants to increase the benefits they receive under the plan.
6. Each plan must designate a vesting schedule, which is a schedule that
___________________________________ - ANSWER outlines how
participants will vest in their ac-count balance or accrued benefits.
7. A vesting schedule defines the percent of
the______________________________. - ANSWER total account
balance or accrued benefit that belongs to the participant at any given
point in time and is based upon a participant's years of service
8. The vested percentage is multiplied by the
_____________________________________to determine the amount of
the participant's vested interest. The law provides minimum standards for a
plan's vesting schedule. - ANSWER participant's account balance or
accrued benefit
9. A defined contribution plan may satisfy the legal vesting requirements for
employer contributions under one of two statutory minimum schedules:
- - ANSWER • 3-year cliff vesting; or
• 6-year graded vesting.
10. Under 3-year cliff vesting, the employee becomes 100% vested once he or
she is credited with _______________. Prior to his or her completion of the
third year of service, the employee's vesting percentage is _________ This
schedule is known as ____________ because the employee will jump from
, no vesting to 100% vesting once he or she completes the third year of
service. - ANSWER three years of service
zero
cliff vesting
11. 3 year cliff vesting percentages - ANSWER Years of Service
Vesting Percent
1
0%
2
0%
3
100%
13. 6 Year graded vesting percentages - ANSWER Years of Service
Vesting Percent
1
0%
2
20%
3
40%
, 4
60%
6
80%
6
100%
12. Under six-year graded vesting, an employee becomes 100 percent vested
once he or she is credited with at ___________________. Because 100
percent vesting can be delayed longer under this option, the law requires
that a __________________apply to earlier years. - ANSWER least six
years of service
minimum vesting percentage
13. Some plans avoid the issue of vesting schedules by simply providing that all
participants are _____________ vested in all accrued benefits at all times.
These plans are known as________________ plans. An immediate vesting
approach would always satisfy the ________________ - ANSWER 100
percent
immediate vesting
minimum vesting schedules.
14. If a plan requires more than one year of service for eligibility purposes, the
_________________. When a plan uses immediate vesting, the need to
keep track of service for vesting purposes is
