CEBS - RPA 2 EXAM 2026-2027 QUESTIONS
AND CORRECT ANSWERS GRADED A+
Excess contribution to IRA subject to nondeductible excise tax of:
6%
Nonworking spouse may establish IRA using what types of payment as basis for
eligibility?
Earned income of working spouse
Fiduciary liable for duly appointed and monitored investment mgr if performance
of plan below benchmark?
Not liable since investment mgmt svcs delegated
Typical range for % of earnings credited under % of earnings per year formula?
1% to 1.25%
Tax treatment of NQSO (NQ stock options) for ER:
ER gets corporate income tax deduction for amount of comp income EE realizes at
exercise of option.
,Penalty for failure to make required distribution of at least correct amount from
qualified retirement plan:
Nondeductible excise tax of 50%
EEs w/drawing contributions from SIMPLE IRA during initial two-year period,
subject to penalty of:
25%
When qualified plan hold ER securities, max amount for fidelity bond is:
Increased by a significant amount
Taxable amount received before 59 1/2 from qualified plan subject to additional
penalty of:
10%
Surge in investments returns on accumulated pension assets will have what effect
on projected plan costs?
Reduction effect
Unfunded plan maintained by ER for purpose of providing deferred comp for a
select group of mgmt or HCEs is:
, Top-hat plan
SERP participation criterion most frequently used:
Position and mgmt status
Requirement of IRC integration w/ Social Security:
That the combined retirement income does not discriminate in favor of HCEs on %
basis
Retirement plan committee charged w/:
Making all decisions necessary regarding administration of retirement plan
Highest annual return and greatest volatility?
Common stocks
Normal retirement age 65, but not to occur later than:
Fifth anniversary participant's date of initial participation
Premature distributions from IRAs exempt from penalty if:
Distribution occurred b/c of IRS levy on account to pay taxes.
AND CORRECT ANSWERS GRADED A+
Excess contribution to IRA subject to nondeductible excise tax of:
6%
Nonworking spouse may establish IRA using what types of payment as basis for
eligibility?
Earned income of working spouse
Fiduciary liable for duly appointed and monitored investment mgr if performance
of plan below benchmark?
Not liable since investment mgmt svcs delegated
Typical range for % of earnings credited under % of earnings per year formula?
1% to 1.25%
Tax treatment of NQSO (NQ stock options) for ER:
ER gets corporate income tax deduction for amount of comp income EE realizes at
exercise of option.
,Penalty for failure to make required distribution of at least correct amount from
qualified retirement plan:
Nondeductible excise tax of 50%
EEs w/drawing contributions from SIMPLE IRA during initial two-year period,
subject to penalty of:
25%
When qualified plan hold ER securities, max amount for fidelity bond is:
Increased by a significant amount
Taxable amount received before 59 1/2 from qualified plan subject to additional
penalty of:
10%
Surge in investments returns on accumulated pension assets will have what effect
on projected plan costs?
Reduction effect
Unfunded plan maintained by ER for purpose of providing deferred comp for a
select group of mgmt or HCEs is:
, Top-hat plan
SERP participation criterion most frequently used:
Position and mgmt status
Requirement of IRC integration w/ Social Security:
That the combined retirement income does not discriminate in favor of HCEs on %
basis
Retirement plan committee charged w/:
Making all decisions necessary regarding administration of retirement plan
Highest annual return and greatest volatility?
Common stocks
Normal retirement age 65, but not to occur later than:
Fifth anniversary participant's date of initial participation
Premature distributions from IRAs exempt from penalty if:
Distribution occurred b/c of IRS levy on account to pay taxes.
