QKA-1 Final Verified Multiple Choice and Conceptual
Actual Frequently Tested Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. Tax notice - ANSWER -must be provided to a participant prior to them
receiving a distribution
2. Annuity - ANSWER -plan takes your amount and buys an annuity from an
insurance company
-an annuity pays you a specified amount each year of your life
-may pay beneficiary after your death
-no flexibility of investments
-no emergency distributions
-guaranteed benefits each year
3. RMD - ANSWER -required minimum distribution
-amount that must be paid to participants of a certain age
-73 and termed or 73 and active but 5% owner
-taken no later than April 1st first year, Dec 31 every year after
-single use one table, married with 10 year difference use joint table to calculate
-penalty is 25% of the amount due
,4. Rollover - ANSWER -direct rollover or 60 day rollover
-transferred from trustee to trustee
-no taxable event occurs if its direct
5. Lump Sum - ANSWER -withdraw entire amount as taxable ordinary income
(besides designated Roth)
6. Partial lump sum - ANSWER -leave most of the money in the plan and take
a partial distribution
-portion distributed is taxable if not rolled over
7. Hardship - ANSWER -money distributed during time of immediate heavy
financial need
-must meet one of the following reasons:
-medical care
-purchase of principal residence
-payment for tuition
-prevent eviction/foreclosure
-burial/funeral expenses
-repair of damage to principal residence under casualty deduction
-FEMA disaster
-amount cannot exceed need
-not exempt from 10% penalty
-tax deferred
,8. Installment payments - ANSWER -periodic payments from the plan
-monthly, annual, specified time, etc
-spreads out tax implications
-may allow amounts to be received in case of emergency
-payments will cease once the account is depleted
9. QDRO - ANSWER -payment to the alternate payee of of a participant as a
part of a divorce
-can be rolled over or cashed out
10. Hardship can be taken from the following sources: - ANSWER -elective
deferrals
-matching contributions
-nonelective contributions
-QNEC/QMAC
-Safe harbor contributions
-after-tax contributions
-plan may restrict these
QBAD - ANSWER -qualified birth/adoption distribution
-distribution of up to $5,000 made during one-year period
-begins when child is born/adopted
, -elective deferrals only
-10% penalty does not apply
QJSA - ANSWER -qualified joint and survivor annuity
-annuity purchased from an insurance company
-annuity payable for your life and upon your death may be payable for the life of
your spouse
-percent payable to spouse ranges from 50-100%
-your payout decreases if your spouses payout is increased
-can elect for a single life annuity with consent of spouse
defined contribution plans are exempt from QJSA if they satisfy the following: -
ANSWER -spouse is entitled to entire benefit (unless they consent to another
beneficiary)
-participant does not elect annuity (don't offer it)
-benefit not attributable to money purchase
-if these aren't followed they must offer QJSA
How to calculate an RMD (Single/spouse is NOT 10 yrs younger) - ANSWER -
Locate age on uniform life expectancy table
-find life expectancy number that corresponds with your age
-divide your account balance as of december 31st of the previous year by the life
expectancy number
-roth not included in calculation
Actual Frequently Tested Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. Tax notice - ANSWER -must be provided to a participant prior to them
receiving a distribution
2. Annuity - ANSWER -plan takes your amount and buys an annuity from an
insurance company
-an annuity pays you a specified amount each year of your life
-may pay beneficiary after your death
-no flexibility of investments
-no emergency distributions
-guaranteed benefits each year
3. RMD - ANSWER -required minimum distribution
-amount that must be paid to participants of a certain age
-73 and termed or 73 and active but 5% owner
-taken no later than April 1st first year, Dec 31 every year after
-single use one table, married with 10 year difference use joint table to calculate
-penalty is 25% of the amount due
,4. Rollover - ANSWER -direct rollover or 60 day rollover
-transferred from trustee to trustee
-no taxable event occurs if its direct
5. Lump Sum - ANSWER -withdraw entire amount as taxable ordinary income
(besides designated Roth)
6. Partial lump sum - ANSWER -leave most of the money in the plan and take
a partial distribution
-portion distributed is taxable if not rolled over
7. Hardship - ANSWER -money distributed during time of immediate heavy
financial need
-must meet one of the following reasons:
-medical care
-purchase of principal residence
-payment for tuition
-prevent eviction/foreclosure
-burial/funeral expenses
-repair of damage to principal residence under casualty deduction
-FEMA disaster
-amount cannot exceed need
-not exempt from 10% penalty
-tax deferred
,8. Installment payments - ANSWER -periodic payments from the plan
-monthly, annual, specified time, etc
-spreads out tax implications
-may allow amounts to be received in case of emergency
-payments will cease once the account is depleted
9. QDRO - ANSWER -payment to the alternate payee of of a participant as a
part of a divorce
-can be rolled over or cashed out
10. Hardship can be taken from the following sources: - ANSWER -elective
deferrals
-matching contributions
-nonelective contributions
-QNEC/QMAC
-Safe harbor contributions
-after-tax contributions
-plan may restrict these
QBAD - ANSWER -qualified birth/adoption distribution
-distribution of up to $5,000 made during one-year period
-begins when child is born/adopted
, -elective deferrals only
-10% penalty does not apply
QJSA - ANSWER -qualified joint and survivor annuity
-annuity purchased from an insurance company
-annuity payable for your life and upon your death may be payable for the life of
your spouse
-percent payable to spouse ranges from 50-100%
-your payout decreases if your spouses payout is increased
-can elect for a single life annuity with consent of spouse
defined contribution plans are exempt from QJSA if they satisfy the following: -
ANSWER -spouse is entitled to entire benefit (unless they consent to another
beneficiary)
-participant does not elect annuity (don't offer it)
-benefit not attributable to money purchase
-if these aren't followed they must offer QJSA
How to calculate an RMD (Single/spouse is NOT 10 yrs younger) - ANSWER -
Locate age on uniform life expectancy table
-find life expectancy number that corresponds with your age
-divide your account balance as of december 31st of the previous year by the life
expectancy number
-roth not included in calculation
