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CEBS RPA 1 EXAM WITH COMPLETE QUESTIONS
AND CORRECT VERIFIED ANSWERS LATEST UPDATE
JUST RELEASED THIS YEAR
Question: Establishing an ESOP provides all of the following advantages to an employer,
EXCEPT:
A) Ability to convert a public company to a private organization
B) Attracting and retaining employees
C) Relief from ERISA fiduciary duties
D) Creating a proprietary interest on the part of the employees
E) Potential to place a large block of employer stock into friendly hands - ANSWER✔✔Except C)
Relief from ERISA fiduciary duties
(Module 8 pg. 22 and Text pg. 225)
Question: A defined benefit plan that bases benefits on compensation earned throughout the
employee's time of employment with a company is which kind of plan?
A) A career average pay plan
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B) A final pay plan
C) A salary deferral plan
D) A traditional pension plan - ANSWER✔✔A) A career average pay plan
(Module 3 pg. 9 and Text pg. 75)
Question: A SIMPLE plan has which of the following characteristics?
A) All contributions to the plan come from the employer
B) The allocation of the contribution is determined for all participants based solely on years of
service
C) These plans may be created by employers with 100 or fewer employees who received at least
$5,000 in compensation in the prior year.
D) All employees are included in the plan
E) The allocation formula provides for additional contributions on the compensation in excess of
the Social Security Wage Base - ANSWER✔✔C) These plans may be created by employers with
100 or fewer employees who received at least $5,000 in compensation in the prior year.
(Module 9 pg. 9-10 and Text pg. 242-243)
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Question: Which contribution type consists of money an employee is deemed to have received
and taken as income, yet was contributed to the plan?
A) After-tax employee contributions
B) Non-elective contributions
C) Matching contributions
D) Safe harbor contributions - ANSWER✔✔A) After-tax employee contributions
(Module 5 pg. 9-10 and Text pg. 145-46)
Question: All of the following employers can offer a 403(b) plan, EXCEPT:
A) A private daycare
B) A charitable organization
C) A tax-exempt hospital
D) A public school system
E) A church - ANSWER✔✔EXCEPT A. private daycare
(Module 8 pg. 7 and Text pg. 199-200)
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Question: Which concept best explains the growth of early retirement plans?
A) Business expediency
B) Competitive advantage
C) Moral obligation
D) Cost structure - ANSWER✔✔A) Business expediency
(Module 1 pg. 13 and Text pg. 16)
Question: Plan sponsors can comply with non-discrimination testing requirements by doing all
of the following, EXCEPT:
A) Implementing formulaic employer matching or non-elective contributions in conjunction with
an automatic enrollment feature
B) Limiting plan eligibility of highly compensated employees
C) Utilizing the safe harbor plan designs first made available in 1999, where the employer uses
either formulaic plan matches or non-elective contributions
D) Engaging in the normal means of testing involving the examination of each participant's
deferrals - ANSWER✔✔EXCEPT: B) Limiting plan eligibility of highly compensated employees
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CEBS RPA 1 EXAM WITH COMPLETE QUESTIONS
AND CORRECT VERIFIED ANSWERS LATEST UPDATE
JUST RELEASED THIS YEAR
Question: Establishing an ESOP provides all of the following advantages to an employer,
EXCEPT:
A) Ability to convert a public company to a private organization
B) Attracting and retaining employees
C) Relief from ERISA fiduciary duties
D) Creating a proprietary interest on the part of the employees
E) Potential to place a large block of employer stock into friendly hands - ANSWER✔✔Except C)
Relief from ERISA fiduciary duties
(Module 8 pg. 22 and Text pg. 225)
Question: A defined benefit plan that bases benefits on compensation earned throughout the
employee's time of employment with a company is which kind of plan?
A) A career average pay plan
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B) A final pay plan
C) A salary deferral plan
D) A traditional pension plan - ANSWER✔✔A) A career average pay plan
(Module 3 pg. 9 and Text pg. 75)
Question: A SIMPLE plan has which of the following characteristics?
A) All contributions to the plan come from the employer
B) The allocation of the contribution is determined for all participants based solely on years of
service
C) These plans may be created by employers with 100 or fewer employees who received at least
$5,000 in compensation in the prior year.
D) All employees are included in the plan
E) The allocation formula provides for additional contributions on the compensation in excess of
the Social Security Wage Base - ANSWER✔✔C) These plans may be created by employers with
100 or fewer employees who received at least $5,000 in compensation in the prior year.
(Module 9 pg. 9-10 and Text pg. 242-243)
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Question: Which contribution type consists of money an employee is deemed to have received
and taken as income, yet was contributed to the plan?
A) After-tax employee contributions
B) Non-elective contributions
C) Matching contributions
D) Safe harbor contributions - ANSWER✔✔A) After-tax employee contributions
(Module 5 pg. 9-10 and Text pg. 145-46)
Question: All of the following employers can offer a 403(b) plan, EXCEPT:
A) A private daycare
B) A charitable organization
C) A tax-exempt hospital
D) A public school system
E) A church - ANSWER✔✔EXCEPT A. private daycare
(Module 8 pg. 7 and Text pg. 199-200)
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Question: Which concept best explains the growth of early retirement plans?
A) Business expediency
B) Competitive advantage
C) Moral obligation
D) Cost structure - ANSWER✔✔A) Business expediency
(Module 1 pg. 13 and Text pg. 16)
Question: Plan sponsors can comply with non-discrimination testing requirements by doing all
of the following, EXCEPT:
A) Implementing formulaic employer matching or non-elective contributions in conjunction with
an automatic enrollment feature
B) Limiting plan eligibility of highly compensated employees
C) Utilizing the safe harbor plan designs first made available in 1999, where the employer uses
either formulaic plan matches or non-elective contributions
D) Engaging in the normal means of testing involving the examination of each participant's
deferrals - ANSWER✔✔EXCEPT: B) Limiting plan eligibility of highly compensated employees
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