10/15/24, 12:52 PM CPFA EXAM NEWEST 2024 ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |A…
CPFA EXAM NEWEST 2024 ACTUAL EXAM
COMPLETE QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Terms in this set (74)
Which statement regarding service providers is TRUE?
A) A TPA performs annual compliance testing.
B) A recordkeeper has the legal obligation to provide
A) A TPA performs annual
an interpretation of a plan provision.
compliance testing.
C) An accountant processes the "money out" for a
participant account.
D) A plan advisor is responsible for drafting annual
safe harbor notices.
Which statement regarding bundled service
arrangements is TRUE?
A) Provides efficient contribution and distribution
processes.
A) Provides efficient
B) Requires less fiduciary oversight than an unbundled
contribution and
service arrangement.
distribution processes.
C) Permits for specific single provider within the
arrangement to be easily removed and replaced with
another provider.
D) Typical arrangement involves a TPA and an
insurance company.
,10/15/24, 12:52 PM CPFA EXAM NEWEST 2024 ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |A…
Based on behavioral finance research, which of the
following is a best practice for producing successful
participant outcomes?
A) Combining auto- A) Combining auto-enrollment with targeted
enrollment with targeted education.
education. B) Adding a self-directed brokerage option.
C) Re-enrolling all participants into equity
investments.
D) Offering group meetings that focus on participants'
rational decision making.
Company ABC and Company DEF are determined to
be part of a related group of companies. All the
following are TRUE except:
A) The employees of both ABC and DEF may end up
C) DEF has the right to
participating in one plan.
"opt out" and be excluded
B) ABC may be required to make contributions for its
from the related group.
employees into DEF's plan.
C) DEF has the right to "opt out" and be excluded
from the related group.
D) If DEF adopts a plan, ABC employees may be
eligible for the plan.
Which of the following plan designs may result in
better participant deferral behavior?
A) Adding an employer
A) Adding an employer matching contribution equal
matching contribution
to 25% up to 12% of compensation deferred.
equal to 25% up to 12% of
B) Adding a 3% nonelective safe harbor contribution.
compensation deferred.
C) Adding a 1,000 hours of service requirement to
receive the employer matching contribution.
D) Adding a profit-sharing contribution.
, 10/15/24, 12:52 PM CPFA EXAM NEWEST 2024 ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |A…
An advisor is meeting with a Plan Sponsor to discuss
contribution design in her plan. All of the following
questions will help with this conversation, EXCEPT:
B) Can participants A) Is there a goal that employees should be required
convert their existing to contribute to receive an employer contribution?
contribution accounts to B) Can participants convert their existing contribution
Roth accounts? accounts to Roth accounts?
C) Is there a group of employees who are unlikely to
participate in the plan?
D) How important is it that employees are on track for
adequate retirement income?
Jake is a sole proprietor and has just established a
software development company. He has recently
hired two employees. Currently, the company does
not have a good cash flow, but if Jake can hire more
software engineers, growth and profits should
increase. Based on that information, all of the
following are questions that an advisor should ask
B) Does the company when establishing a plan for Jake's company, EXCEPT:
have an established line of
credit? A) Can the company's current cash flow support
employer contributions?
B) Does the company have an established line of
credit?
C) What are Jake's objectives for attracting future
employees?
D) Is Jake willing to make a fixed contribution if it
enables him to save more?
A partnership is a business that:
B) Has at least two A) Cannot have a limited liability structure.
partners. B) Has at least two partners.
C) Is typically run by a board of directors.
D) Reports income on form 1120.
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