CEBS - RPA 2 EXAM
ACTUAL QUESTIONS AND CORRECT VERIFIED ANSWERS LATEST 2026-
2027 UPDATE
1. Premature distributions from IRAs exempt from penalty if
** answer ** >> Distribution occurred b/c of IRS levy on account to pay taxes.
2. IRA qualified distributions include
** answer ** >> Attained age 59 1/2; disabled; died and payment made to beneficiary
or estate; pay first-time home buyer expenses, not to exceed $10k.
3. Term used to describe condition that occurs b/c of different
accrual patterns when traditional DB plan converted to cash balance
plan
** answer ** >> Pension wear away
4. Section 409A
** answer ** >> IRC mandate that income from deferred comp arrangements not be deferred
beyond year in which comp is earned.
5. Qualified retirement plans required to have fidelity bond covering
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, what %?
** answer ** >> -10%
6. Dollar cost averaging
** answer ** >> Involves investing the same amount of money on periodic basis, whether
over- or under-priced.
7. Vesting provisions of executive retirement arrangements
** answer ** >> varies depending on intent of executive arrangement
8. Excess contribution to IRA subject to nondeductible excise tax of
** answer ** >> 6%
9. Nonworking spouse may establish IRA using what types of payment
as basis for eligibility?
** answer ** >> Earned income of working spouse
10. Fiduciary liable for duly appointed and monitored investment mgr
if perfor- mance of plan below benchmark?
** answer ** >> Not liable since investment mgmt svcs delegated
11. Typical range for % of earnings credited under % of earnings
per year formula?
** answer ** >> 1% to 1.25%
12. Tax treatment of NQSO (NQ stock options) for ER
** answer ** >> ER gets corporate income tax deduction for amount of comp income EE
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, realizes at exercise of option.
13. Penalty for failure to make required distribution of at least
correct amount from qualified retirement plan
** answer ** >> Nondeductible excise tax of 50%
14. EEs w/drawing contributions from SIMPLE IRA during initial two-
year period, subject to penalty of
** answer ** >> 25%
15. When qualified plan hold ER securities, max amount for fidelity
bond is
** answer ** >> In- creased by a significant amount
16. Taxable amount received before 59 1/2 from qualified plan
subject to addi- tional penalty of
** answer ** >> 10%
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ACTUAL QUESTIONS AND CORRECT VERIFIED ANSWERS LATEST 2026-
2027 UPDATE
1. Premature distributions from IRAs exempt from penalty if
** answer ** >> Distribution occurred b/c of IRS levy on account to pay taxes.
2. IRA qualified distributions include
** answer ** >> Attained age 59 1/2; disabled; died and payment made to beneficiary
or estate; pay first-time home buyer expenses, not to exceed $10k.
3. Term used to describe condition that occurs b/c of different
accrual patterns when traditional DB plan converted to cash balance
plan
** answer ** >> Pension wear away
4. Section 409A
** answer ** >> IRC mandate that income from deferred comp arrangements not be deferred
beyond year in which comp is earned.
5. Qualified retirement plans required to have fidelity bond covering
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, what %?
** answer ** >> -10%
6. Dollar cost averaging
** answer ** >> Involves investing the same amount of money on periodic basis, whether
over- or under-priced.
7. Vesting provisions of executive retirement arrangements
** answer ** >> varies depending on intent of executive arrangement
8. Excess contribution to IRA subject to nondeductible excise tax of
** answer ** >> 6%
9. Nonworking spouse may establish IRA using what types of payment
as basis for eligibility?
** answer ** >> Earned income of working spouse
10. Fiduciary liable for duly appointed and monitored investment mgr
if perfor- mance of plan below benchmark?
** answer ** >> Not liable since investment mgmt svcs delegated
11. Typical range for % of earnings credited under % of earnings
per year formula?
** answer ** >> 1% to 1.25%
12. Tax treatment of NQSO (NQ stock options) for ER
** answer ** >> ER gets corporate income tax deduction for amount of comp income EE
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, realizes at exercise of option.
13. Penalty for failure to make required distribution of at least
correct amount from qualified retirement plan
** answer ** >> Nondeductible excise tax of 50%
14. EEs w/drawing contributions from SIMPLE IRA during initial two-
year period, subject to penalty of
** answer ** >> 25%
15. When qualified plan hold ER securities, max amount for fidelity
bond is
** answer ** >> In- creased by a significant amount
16. Taxable amount received before 59 1/2 from qualified plan
subject to addi- tional penalty of
** answer ** >> 10%
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