Definition 1 of 74
Which statement regarding bundled service arrangements is TRUE?
Provides efficient contribution and distribution processes.
Requires less fiduciary oversight than an unbundled service arrangement.
Permits for specific single provider within the arrangement to be easily removed and
replaced with another provider.
Typical arrangement involves a TPA and an insurance company.
Definition 2 of 74
Which statement regarding IRA plans and 401k plans is TRUE?
SIMPLE IRA plans are used to maximize plan benefits to owners.
SIMPLE IRAs and 401ks have the same plan document requirements.
Participant loans are allowed from a SIMPLE 401k plan but not a SIMPLE IRA.
An employer may sponsor a SIMPLE IRA and a 401k plan in the same calendar year.
Definition 3 of 74
All of the following are parties-in-interest to the STU, Inc. Profit Sharing Plan, EXCEPT:
Brian, who is a plan participant and the president's brother
XYZ Inc., who is seeking to acquire STU, Inc.
Independent auditor of the Plan's financial statements
Legal counsel to the Plan
,Definition 4 of 74
All of the following represent potential breaches of fiduciary responsibility by plan
fiduciaries, EXCEPT:
A Plan Trustee delegates some of his responsibilities to a discretionary trustee who he
continues to monitor.
A Plan Sponsor chooses a bank's recordkeeping service without performing due diligence
because the bank provides reduced rates on corporate banking services.
A Plan Trustee deposits weekly payroll deferrals at the end of the quarter.
A Plan Sponsor appoints a consultant to monitor the plan's service provider but then
ignores the consultant's findings.
Definition 5 of 74
Company ABC and Company DEF are determined to be part of a related group of companies. All
the following are TRUE except:
The employees of both ABC and DEF may end up participating in one plan.
ABC may be required to make contributions for its employees into DEF's plan.
DEF has the right to "opt out" and be excluded from the related group.
If DEF adopts a plan, ABC employees may be eligible for the plan.
Definition 6 of 74
All of the following describe qualified default investment alternative (QDIA) rules, EXCEPT:
A plan must use a QDIA as its default fund.
Participants receive an initial QDIA notice when first defaulted into the QDIA.
A balanced fund qualifies as a QDIA.
An appropriate QDIA qualifies for fiduciary safe harbor relief.
, Definition 7 of 74
The MNO Company is converting its 401(k) plan to a new provider. Joe, the plan advisor, has
explained to the plan fiduciaries the need to retain documents as part of good fiduciary
governance. Which document does NOT need to be retained in MNO's fiduciary file?
New provider's fee schedule
New service provider agreements
Blackout notice
New enrollment kit
Definition 8 of 74
Which statement regarding the IRS and DOL correction programs is TRUE?
The IRS and DOL correction programs cover identical plan errors.
The Voluntary Fiduciary Correction Program can be used only when an error is found
during a DOL investigation.
The DOL website includes an online calculator that calculates earnings amounts to be paid
to the plan.
The Employee Plans Compliance Resolution System is used to correct prohibited
transaction violations.
Definition 9 of 74
All of the following are best practices for monitoring plan investments, EXCEPT:
Review investments to ensure they meet current plan goals.
Document the investment qualitative analysis review.
Document the reasons for retaining an investment with significantly higher than average
expenses.
Make changes based solely on quarterly investment results.
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