FPQP COMPREHENSIVE STUDY GUIDE
2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ Defined benefit plansCash balance plans Profit sharing plans 401(k) plans.
Answer: Types of qualified plans (4)
◍ Traditional IRARoth IRA403(b) SIMPLE IRASEP IRA.
Answer: Other tax-advantaged plans (5)
◍ 457 plans.
Answer: Non qualified plans
◍ Pretax contributions Tax-deferred growth Vesting.
Answer: Common features of qualified plans
◍ defined benefit pension plan.
Answer: A type of pension plan that provides a fixed amount payment upon
retirement.
◍ Cash Balance Plan.
Answer: A defined benefit plan that provides for specific annual employer
contributions that accumulate at a guaranteed investment return
◍ Only employers.
Answer: Who contributes to a defined benefit plan?
◍ Profit sharing plan.
Answer: A defined contribution plan whereby the company shares any
profits with employees in the form of contributions to a retirement account.
◍ Employees must meet age and service requirements Limited to 25% of
participants total compensation.
Answer: Eligibility for profit sharing plans
, ◍ 401(k) plan.
Answer: A plan that allows an employee to defer salary to a tax-deferred
profit sharing plan
◍ Traditional IRA.
Answer: Individual Retirement Account - A personal qualified retirement
account through which eligible individuals accumulate tax-deferred income
up to a certain amount each year.
◍ Roth IRA.
Answer: private retirement plan that taxes income before it is saved, but
which does not tax interest on that income when funds are used upon
retirement
◍ $129,000/$204,000.
Answer: Phaseout amounts for both spouses being active in company
retirement plans vs one spouse only
◍ Roth IRA Eligibility.
Answer: An individual is only eligible to contribute to a Roth IRA if their
modified adjusted gross income is below a certain threshold.
◍ •A 5 year holding period has been met•The distribution is made after 59 1/2,
death, disability, or 1st time purchase of home.
Answer: Qualified Roth IRA Distributions
◍ 1. Return of contributions 2. Return of conversion amount3. Return of
earnings.
Answer: 3 possible categories of Roth IRA distributions
◍ Roth Conversion.
Answer: The result of converting a traditional IRA into a Roth IRA. Current
income taxes are payable on the full value of the traditional IRA at the time
of the conversion, but after that, all distributions are tax-free.
◍ Spousal IRA.
Answer: an individual retirement account set up to benefit a spouse who has
2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ Defined benefit plansCash balance plans Profit sharing plans 401(k) plans.
Answer: Types of qualified plans (4)
◍ Traditional IRARoth IRA403(b) SIMPLE IRASEP IRA.
Answer: Other tax-advantaged plans (5)
◍ 457 plans.
Answer: Non qualified plans
◍ Pretax contributions Tax-deferred growth Vesting.
Answer: Common features of qualified plans
◍ defined benefit pension plan.
Answer: A type of pension plan that provides a fixed amount payment upon
retirement.
◍ Cash Balance Plan.
Answer: A defined benefit plan that provides for specific annual employer
contributions that accumulate at a guaranteed investment return
◍ Only employers.
Answer: Who contributes to a defined benefit plan?
◍ Profit sharing plan.
Answer: A defined contribution plan whereby the company shares any
profits with employees in the form of contributions to a retirement account.
◍ Employees must meet age and service requirements Limited to 25% of
participants total compensation.
Answer: Eligibility for profit sharing plans
, ◍ 401(k) plan.
Answer: A plan that allows an employee to defer salary to a tax-deferred
profit sharing plan
◍ Traditional IRA.
Answer: Individual Retirement Account - A personal qualified retirement
account through which eligible individuals accumulate tax-deferred income
up to a certain amount each year.
◍ Roth IRA.
Answer: private retirement plan that taxes income before it is saved, but
which does not tax interest on that income when funds are used upon
retirement
◍ $129,000/$204,000.
Answer: Phaseout amounts for both spouses being active in company
retirement plans vs one spouse only
◍ Roth IRA Eligibility.
Answer: An individual is only eligible to contribute to a Roth IRA if their
modified adjusted gross income is below a certain threshold.
◍ •A 5 year holding period has been met•The distribution is made after 59 1/2,
death, disability, or 1st time purchase of home.
Answer: Qualified Roth IRA Distributions
◍ 1. Return of contributions 2. Return of conversion amount3. Return of
earnings.
Answer: 3 possible categories of Roth IRA distributions
◍ Roth Conversion.
Answer: The result of converting a traditional IRA into a Roth IRA. Current
income taxes are payable on the full value of the traditional IRA at the time
of the conversion, but after that, all distributions are tax-free.
◍ Spousal IRA.
Answer: an individual retirement account set up to benefit a spouse who has
