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RPA 1 - Final Exam 100 Questions with correct Answers .
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RPA 1 - Final Exam 100 Questions with correct Answers .
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RPA 1 - Final Exam 100 Questions with correctAnswers 2024-2025.
Top-hat plan - Correct Answer a retirement plan that is unfunded and maintained by an
employer primarily for the purpose of providing deferred compensation for a "select
group of management or highly compensated employees" is called a (n):
Economic Benefit - Correct Answer a theory of income taxation that imposes current tax
liability on taxpayers who receive something of reasonable value is known as the
doctrine of:
Must be given the election to remain under the pre-amendment vesting schedule for
both pre-and post-amendment benefit accruals. - Correct Answer An employee with four
years of service participates in a retirement plan. The vesting schedule in this plan is
changed by plan amendment. Under tax law, this plan participant:
An example of a sponsor of a 403(b) plan is - Correct Answer public college
Contributions to a profit sharing plan must be made on - Correct Answer A substantial
and reoccurring basis
Employees withdrawing contributions from a savings incentive match plan for
employees (SIMPLE plan) individual retirement account (IRA) during the two-year
period beginning on the date of initial participation are subject to a penalty tax of -
Correct Answer 25 percent
Federal law defines normal retirement age to be the age specified in the plan, but it
cannot occur beyond the later of - Correct Answer Age 65 or the fifth anniversary of the
participant's date of initial participation
For a distribution from a Roth IRA account to receive favorable tax treatment as a
qualified distribution, how long must contributions be in the account? - Correct Answer 5
years
For all defined contribution plans, there is a uniform employer deduction limit of -
Correct Answer 25% of compensation
How the Pension Protection Act of 2006 change requirements for investment advice did
provided to individual retirement account (IRA) owners? - Correct Answer the Act
requires that fees for such advice not be contingent on the investment option chosen.
If a contribution to a profit sharing plan exceeds the maximum deductible contribution
limit, the employer can carryover the excess contribution to the succeeding year, but will
be subject to an excise tax on the excess contribution of: - Correct Answer 10 percent
, If you knew that a vendor servicing a 401(k) plan was clearing trades internally and not
using an outside directed trustee, you generally could conclude that: - Correct Answer
The vendor was providing plan services as a bundled service provider.
In 1948 the National Labor Relations Board (NLRB) found that the provisions of
retirement plans affect conditions of employment and that retirement benefits constitute:
- Correct Answer Wages
In addition to current income taxation, any excess contribution to an individual
retirement account (IRA) is subject to a nondeductible excise tax of: - Correct Answer 6
percent
in general, the aggregate amount of employer contribution allocated to a younger
employee under a defined contribution plan compared to that under a defined benefit
plan is: - Correct Answer A higher amount
Key employees, for purposes of the top-heavy rules, include all: - Correct Answer One
percent owners receiving annual compensation in excess of $150,000
Of all of the following factors in the Black-Scholes option pricing model, which one is
generally deemed to have the most relative impact on the value of the option? - Correct
Answer The expected volatility of the underlying stock's market price
The annual limit on deferral amounts for an ineligible Section 457 plan is - Correct
Answer Unlimited
The limitation on exclusions for elective deferrals under 401(k) plans is: - Correct
Answer Indexed in increments established by the Economic Growth and Tax Relief
Reconciliation Act (EGTRRA)
The most frequently used criterion to establish participation in a supplemental executive
retirement plan (SERP) is: - Correct Answer Position and management status
The Supreme Court ruled in Arizona Governing Committee v. Norris that: - Correct
Answer Life annuities under an employer-sponsored defined contribution plan must be
provided on a uniform basis
The vesting provision of executive retirement arrangements: - Correct Answer Varies
depending on the intent of the executive arrangement
Those questioning the validity of the human depreciation concept of private pensions
would argue that the employer should be held responsible only for the increase in the
rate of aging caused by: - Correct Answer Occupational hazards
To receive tax-preferred treatment under an ineligible Section 457 plan, amounts
deferred must be - Correct Answer Subject to a substantial risk of forfeiture
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