NAPA CPFA CERTIFICATION EXAM ACTUAL EXAM
2026 | CERTIFIED PLAN FIDUCIARY ACTUAL EXAM
| ALL QUESTIONS AND CORRECT ANSWERS |
BRAND NEW VERSION!
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:
a. Is there a goal that employees should be required to contribute to
receive an employer contribution?
b. Can participants convert their existing contribution 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? ------------Correct Answer--------------------b. Can
participants convert their existing contribution accounts to Roth
accounts?
,-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 the information above, all of the following are questions that
an advisor should ask when establishing a plan for Jake's company,
EXCEPT:
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? ------------Correct Answer--------------------b. Does the company
have an established line of credit?
A partnership is a business that:
,a. Cannot have a limited liability structure.
b. Has at least two partners.
c. Is typically run by a board of directors.
d. Reports income on Form 1120. ------------Correct Answer-----------------
---b. Has at least two partners.
All of the following describe the impact of a business's cash flow and
budget when establishing a plan, EXCEPT:
a. A plan advisor should inform the employer that required
contributions will be waived for any year that the company does not
make a profit.
b. A plan advisor should explain a plan's contribution commitment to
the employer.
c. Employers should have a stable cash flow if they are considering
adopting a Defined Benefit/Defined Contribution combination plan.
, d. A plan advisor may work with the service provider to show estimates
of what employer contributions would be under different contribution
formulas. ------------Correct Answer--------------------a. A plan advisor
should inform the employer that required contributions will be waived
for any year that the company does not make a profit.
Which of the following reports can be used in measuring plan
effectiveness and participant outcomes?
a. Number of terminated participants who elected to roll their accounts
into IRAs
b. Average deferral rate of participants in the plan
c. Independent accountant's required annual audit of the plan
d. Summary Annual Report ------------Correct Answer--------------------b.
Average deferral rate of participants in the plan
All of the following are benefits of participant retirement readiness,
EXCEPT:
2026 | CERTIFIED PLAN FIDUCIARY ACTUAL EXAM
| ALL QUESTIONS AND CORRECT ANSWERS |
BRAND NEW VERSION!
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:
a. Is there a goal that employees should be required to contribute to
receive an employer contribution?
b. Can participants convert their existing contribution 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? ------------Correct Answer--------------------b. Can
participants convert their existing contribution accounts to Roth
accounts?
,-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 the information above, all of the following are questions that
an advisor should ask when establishing a plan for Jake's company,
EXCEPT:
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? ------------Correct Answer--------------------b. Does the company
have an established line of credit?
A partnership is a business that:
,a. Cannot have a limited liability structure.
b. Has at least two partners.
c. Is typically run by a board of directors.
d. Reports income on Form 1120. ------------Correct Answer-----------------
---b. Has at least two partners.
All of the following describe the impact of a business's cash flow and
budget when establishing a plan, EXCEPT:
a. A plan advisor should inform the employer that required
contributions will be waived for any year that the company does not
make a profit.
b. A plan advisor should explain a plan's contribution commitment to
the employer.
c. Employers should have a stable cash flow if they are considering
adopting a Defined Benefit/Defined Contribution combination plan.
, d. A plan advisor may work with the service provider to show estimates
of what employer contributions would be under different contribution
formulas. ------------Correct Answer--------------------a. A plan advisor
should inform the employer that required contributions will be waived
for any year that the company does not make a profit.
Which of the following reports can be used in measuring plan
effectiveness and participant outcomes?
a. Number of terminated participants who elected to roll their accounts
into IRAs
b. Average deferral rate of participants in the plan
c. Independent accountant's required annual audit of the plan
d. Summary Annual Report ------------Correct Answer--------------------b.
Average deferral rate of participants in the plan
All of the following are benefits of participant retirement readiness,
EXCEPT:
