QKA 1 Verified Multiple Choice and Conceptual
Actual Frequently Tested Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What is a defined benefit plan? - ANSWER A plan that does not
maintain individual account balances, but instead guarantees a benefit to
participants.
2. Whose responsibility is it to ensure that a defined benefit plan has enough
money to provide all participants their retirement benefits? - ANSWER
The employer
3. What is an advantage of a defined benefit plan? - ANSWER The
contributions can be large, and significantly more than the maximum
allowed for defined contribution plans
4. What is a disadvantage of a defined benefit plan? - ANSWER
Contributions to employees are required even if the company has a bad
year.
5. True or false: a defined benefit plan is legally defined as any plan other than
a defined contribution plan. - ANSWER True
,6. True or false: a defined benefit plan is not required to provide definitely
determinable benefits - ANSWER False
7. True or false: a defined benefit plan maintains individual account balances
to reflect the accrued benefits of the plan participants. - ANSWER False;
Instead, the amount available to provide benefits at retirement is
determined by a formula stated in the plan.
8. If the investments within a defined benefit plan lose money or perform
worse than expected, who is responsible for contributing more to make up
the difference? - ANSWER The employer
9. True or false: In-service withdrawals are not permitted under a defined
benefit plan. - ANSWER True
10.What are the permissible withdrawal options under a defined benefit plan?
- ANSWER Termination of employment, disability, and retirement.
11.True or false: a defined benefit plan can be a nonpension plan. - ANSWER
False; all defined benefit plans are pension plans.
12.True or false: a defined benefit plan is subject to minimum funding rules. -
ANSWER True
,13.What is a defined benefit plan? - ANSWER A plan that does not
maintain individual account balances, but instead guarantees a benefit to
participants.
14.Whose responsibility is it to ensure that a defined benefit plan has enough
money to provide all participants their retirement benefits? - ANSWER
The employer
15.What is an advantage of a defined benefit plan? - ANSWER The
contributions can be large, and significantly more than the maximum
allowed for defined contribution plans
16.What is a disadvantage of a defined benefit plan? - ANSWER
Contributions to employees are required even if the company has a bad
year.
17.True or false: a defined benefit plan is legally defined as any plan other than
a defined contribution plan. - ANSWER True
18.True or false: a defined benefit plan is not required to provide definitely
determinable benefits - ANSWER False
19.True or false: a defined benefit plan maintains individual account balances
to reflect the accrued benefits of the plan participants. - ANSWER False;
Instead, the amount available to provide benefits at retirement is
determined by a formula stated in the plan.
, If the investments within a defined benefit plan lose money or perform worse
than expected, who is responsible for contributing more to make up the
difference? - ANSWER The employer
True or false: In-service withdrawals are not permitted under a defined benefit
plan. - ANSWER True
What are the permissible withdrawal options under a defined benefit plan? -
ANSWER Termination of employment, disability, and retirement.
True or false: a defined benefit plan can be a nonpension plan. - ANSWER
False; all defined benefit plans are pension plans.
True or false: a defined benefit plan is subject to minimum funding rules. -
ANSWER True
Are profit sharing plans a defined benefit or defined contribution form of plan? -
ANSWER Defined contribution
Can an elective deferral option be offered as part of a profit sharing plan? -
ANSWER Yes
Does the employer have to make a contribution each year to satisfy qualifications
for a profit sharing plan? - ANSWER No
Actual Frequently Tested Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What is a defined benefit plan? - ANSWER A plan that does not
maintain individual account balances, but instead guarantees a benefit to
participants.
2. Whose responsibility is it to ensure that a defined benefit plan has enough
money to provide all participants their retirement benefits? - ANSWER
The employer
3. What is an advantage of a defined benefit plan? - ANSWER The
contributions can be large, and significantly more than the maximum
allowed for defined contribution plans
4. What is a disadvantage of a defined benefit plan? - ANSWER
Contributions to employees are required even if the company has a bad
year.
5. True or false: a defined benefit plan is legally defined as any plan other than
a defined contribution plan. - ANSWER True
,6. True or false: a defined benefit plan is not required to provide definitely
determinable benefits - ANSWER False
7. True or false: a defined benefit plan maintains individual account balances
to reflect the accrued benefits of the plan participants. - ANSWER False;
Instead, the amount available to provide benefits at retirement is
determined by a formula stated in the plan.
8. If the investments within a defined benefit plan lose money or perform
worse than expected, who is responsible for contributing more to make up
the difference? - ANSWER The employer
9. True or false: In-service withdrawals are not permitted under a defined
benefit plan. - ANSWER True
10.What are the permissible withdrawal options under a defined benefit plan?
- ANSWER Termination of employment, disability, and retirement.
11.True or false: a defined benefit plan can be a nonpension plan. - ANSWER
False; all defined benefit plans are pension plans.
12.True or false: a defined benefit plan is subject to minimum funding rules. -
ANSWER True
,13.What is a defined benefit plan? - ANSWER A plan that does not
maintain individual account balances, but instead guarantees a benefit to
participants.
14.Whose responsibility is it to ensure that a defined benefit plan has enough
money to provide all participants their retirement benefits? - ANSWER
The employer
15.What is an advantage of a defined benefit plan? - ANSWER The
contributions can be large, and significantly more than the maximum
allowed for defined contribution plans
16.What is a disadvantage of a defined benefit plan? - ANSWER
Contributions to employees are required even if the company has a bad
year.
17.True or false: a defined benefit plan is legally defined as any plan other than
a defined contribution plan. - ANSWER True
18.True or false: a defined benefit plan is not required to provide definitely
determinable benefits - ANSWER False
19.True or false: a defined benefit plan maintains individual account balances
to reflect the accrued benefits of the plan participants. - ANSWER False;
Instead, the amount available to provide benefits at retirement is
determined by a formula stated in the plan.
, If the investments within a defined benefit plan lose money or perform worse
than expected, who is responsible for contributing more to make up the
difference? - ANSWER The employer
True or false: In-service withdrawals are not permitted under a defined benefit
plan. - ANSWER True
What are the permissible withdrawal options under a defined benefit plan? -
ANSWER Termination of employment, disability, and retirement.
True or false: a defined benefit plan can be a nonpension plan. - ANSWER
False; all defined benefit plans are pension plans.
True or false: a defined benefit plan is subject to minimum funding rules. -
ANSWER True
Are profit sharing plans a defined benefit or defined contribution form of plan? -
ANSWER Defined contribution
Can an elective deferral option be offered as part of a profit sharing plan? -
ANSWER Yes
Does the employer have to make a contribution each year to satisfy qualifications
for a profit sharing plan? - ANSWER No
